LDK Solar sells bigger stake to investment firm

LDK Solar Co. said Friday that an investment firm run by a Hong Kong businessman has agreed to expand its stake in the company by buying $25.8 million in shares.

LDK said it will issue and sell 25 million shares at $1.03 each to Fulai Investments Ltd., an investment firm owned by Cheng Kin Ming.

In January, Fulai agreed to buy 12 percent of LDK for $31.1 million.

The new deal calls for it to make payments of $15 million in May and almost $10.8 million in June. LDK said it will use the money for general corporate purposes.

The company said the $1.03 share price was an 8 percent discount to its average share price over the past five days. On Friday, LDK shares rose 2 cents to $1.30.The shares have risen steadily all week, opening Monday around $1.05.

LDK makes solar wafers, cells and modules. Like other solar companies, it has been hurt by falling demand and prices for solar products.