Jay Yoon
Long/short equity, special situations

JinkoSolar: Newly Formed Partnerships Position Company For Success

Recent Investment in Jinko Power a Long Term Positive for JKS

On July 30th, JinkoSolar (NYSE:JKS) announced that China Development Bank International ("CDBI"), the Macquarie Greater China Infrastructure Fund ("MGCIF"), and New Horizon Capital ("New Horizon") had agreed to invest $225mm in Jinko Power, the company's downstream solar project development subsidiary. Following the investment and subsequent capital contribution by JKS to Jinko Power, the three investors will own a combined 45% equity stake in Jinko Power. Unfortunately for JKS shareholders, this transaction received a rather lukewarm response from the market. The stock traded relatively flat on the day of the announcement and has declined 10% overall since July 30th.

This lukewarm response was most likely due to the...

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