A Chinese solar equipment maker in the center of a regulatory spat with Hong Kong authorities has canceled a deal to buy up to HK$50.51 billion (US$6.52 billion) worth of solar panels from its parent.
Hanergy Thin Film Power Group Ltd. (00566.HK) made the announcement just five days after Hong Kong’s securities watchdog ordered the continued suspension of its stock, pending an unspecified investigation, according to the Wall Street Journal.
Earlier, Hanergy said it would buy thin film solar panels from its privately held Beijing-based parent over three years.
The deal would be capped at HK$16.84 billion a year from 2015 to 2017.
But on Monday, Hanergy said a statement to the Hong Kong stock exchange that it canceled the deal to “further minimize the amount of connected transactions” with its parent, Hanergy Holding Group Ltd.
Hanergy Holding buys solar panel-making equipment from Hanergy Thin Film, makes the panels and sells some of them back to the Hong Kong-based unit.
In June, Hanergy Thin Film canceled a US$585 million deal to sell equipment and technical services to its parent.
Other connected transactions, ranging from spare parts sales, property leases and airplane charters, remain between the two companies.
Hanergy Thin Film suspended trading of its shares at its own request on May 20 after its stock price plunged 47 percent in a matter of minutes.
Soon after, the SFC said it had launched an unspecified investigation in to the company.
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