GCL-Poly Energy, a Hong Kong-based power plant operator, said on Tuesday it would pay HK$26.4bn (US$3.4bn) to acquire solar assets from its chairman as it seeks to expand in the green energy sector. The company said it would buy Jiangsu Zhongeng, a supplier of polysilicon and wafers used by the solar industry, from Zhu Gongshan, chairman and controlling shareholder of GCL-Poly.

To fund the purchase, GCL-Poly will issue 10bn new shares at HK$2.2 each, representing a 12 per cent discount to the company’s last closing price. It will also issue US$350m in secured notes and pay Mr Zhu US$200m in cash.