GCL-Poly's Divestiture Plan a Big Help to Debt -- Market Talk

06/09/2019 22:36 ET  Dow Jones Newswires

DJ GCL-Poly's Divestiture Plan a Big Help to Debt -- Market Talk

0236 GMT - Planning to sell a 51% stake in GCL New Energy has Daiwa upgrading GCL-Poly to outperform and lifting its stock target 13% to HK$0.52. The broker says the move, which would leave Poly with an 11% stake in the solar-farm operator, will "effectively alleviate" the polysilicon and wafer producer's financial burdens. A sale could halve Poly's net gearing, which currently stands at 219%, and comes at the firm has CNY9 billion ($1.3 billion) of debt coming due this year. Daiwa says if Poly has to refinance the borrowings, it would likely have to do so at a high cost. Poly jumped 7.4% Thursday before reversing 3.9% on Friday. They're up 1% this morning at HK$0.495. (john.wu@wsj.com)

(END) Dow Jones Newswires

June 09, 2019 22:36 ET (02:36 GMT)

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