TCL Zhonghuan boosts stake in key solar subsidiary for $2.5B

TCL Zhonghuan Semiconductor (SZSE:002129) will acquire a combined 24.64% stake in its controlling subsidiary, Inner Mongolia Zhonghuan Crystal Materials Co., Ltd. ("Zhonghuan Crystal"), for 18 billion yuan (approximately $2.5 billion USD). The acquisitions, from sellers China Merchants Bank Financial Assets Investment Co., Ltd and CCB Financial Asset Investment Co., Ltd, will increase TCL Zhonghuan's direct and indirect ownership in Zhonghuan Crystal to 83.96%. The transaction, funded by internal resources and financing, aims to strengthen control over core solar operations. The deal was approved by TCL Zhonghuan’s board and does not require shareholder approval. Zhonghuan Crystal reported revenue of 27.92 billion yuan and a net profit of 2.19 billion yuan for FY2023 and year-to-date revenue of 9.86 billion yuan and a net loss of 1.58 billion yuan for the first nine months of 2024.