LDK Solar Co. (LDK) agreed to sell a 15% stake in a polysilicon plant to Jiangxi
International Trust & Investment Co. for $219 million, strengthening the wafer
maker's financial position as it weathers the downturn in solar-power demand.
Wall Street applauded the deal, sending LDK shares up 12% to $7.51 in after-hours
trading. That rise puts the stock just over double the 52-week low eight months
ago, but it remains down more than half from the high in January.
The solar company has been grappling with weak demand since the oil bubble popped last year and the financial crisis tightened credit. However, Chairman and Chief
Executive Xiaofeng Peng said in August that demand was beginning to turn more positive.
The plant in Xinyu City, China, has an annual capacity of 15 million metric tons.