Zhejiang Windey to increase stake in renewable energy firm

Zhejiang Windey, a Shenzhen-listed company, has announced a private placement that will see its parent company, Zhejiang Provincial Mech-Elec Holding Group, increase its stake to 46.50%. The parent will subscribe to 365,958,150 newly issued shares. The transaction, structured as a private placement to the parent, avoids triggering a mandatory general offer under Chinese regulations. Zhejiang Provincial Mech-Elec Holding Group already held 40.01% of Zhejiang Windey’s shares, which gave them a controlling interest. The injection by the company's main shareholder shows confidence in the future. Proceeds from the offering will bolster working capital. The placement is subject to usual conditions, including regulatory approvals.