M&A

17 November, 2009

UPDATE 1-LDK Solar to sell stake in Chinese plant for $219 mln

* To sell stake to Jiangxi International Trust

* To use proceeds to strengthen financial position

* Shares jump 14 pct

Nov 17 (Reuters) - Solar wafer maker LDK Solar Co Ltd (LDK.N) said it agreed to sell a 15 percent stake in its Chinese polysilicon plant to Jiangxi International Trust and Investment Co Ltd for about $219 million.

Shares of LDK Solar jumped 14 percent to $7.63 in trading after the bell. They closed at $6.71 Tuesday on the New York Stock Exchange.

"Jiangxi International Trust and Investment Co's investment in our 15,000 MT polysilicon plant will significantly strengthen our financial position and increase our near-term operating flexibility," LDK Solar Chief Executive Xiaofeng Peng said in a statement. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Deepak Kannan)

Source: http://www.reuters.com