Chinese solar-power float

A FORMER head of the UK Atomic Energy Authority is to lead the London float of a Chinese solar-power company.

Dipesh Shah, who was chief executive of the UKAEA and chairman of Viridian Group, has been appointed executive chairman of Jetion Holdings, a leading Chinese manufacturer of solar cells. The company has a factory north of Shanghai.Shah said Jetion planned to raise about $75m (£38m) from the AIM listing, a deal that would value the company at $220m.

About one-third of the shares would be in free float. However, Shah said a majority stake would continue to be held by the Chinese family investor that first backed the group.

KKR’s pension fund boost

KOHLBERG KRAVIS ROBERTS (KKR) is planning another cash injection to the Boots pension fund in an effort to avoid further accusations that its takeover of the chemist is leaving the scheme’s 66,000 members vulnerable.

A series of tense negotiations was held last week between KKR and Stefano Pessina, whose £11.1 billion takeover of Boots was approved last month, and John Watson, head of the Boots trustees, in which the bidders agreed to make some concessions.

Last month, KKR claimed that Watson’s demands for a £1 billion injection into the scheme was too much. Instead it has offered to put £340m into the scheme over 10 years, plus a £600m safety package, which still leaves the scheme about £65m short.

Tote set to be sold for £400m

A HORSERACING industry consortium is edging closer to a deal to buy the Tote, the state-owned bookmaker, for about £400m.

The group, which includes the Tote’s management as well as racing bodies such as the Racecourse Association, is locked in talks with the Treasury over the structure of its bid. An announcement from the government about the deal could come in the next fortnight.

The consortium submitted its original bid in January but has recently revised its proposals to ensure it is acceptable to the government.

Tchenguiz’s property plan

ROBERT TCHENGUIZ, the Iranian property tycoon, is working on a fresh plan to unlock the value from J Sainsbury’s property portfolio, amid speculation that Delta Two, an investment company backed by the Qatari prime minister, is plotting a takeover bid for the supermarket giant.

A document prepared by Citigroup for R20, a Tchenguiz-controlled vehicle, suggests he wants to create a 50:50 joint venture with the supermarket group on its property assets, which he values at up to £10 billion. This would allow Sainsbury to raise £7 billion net of debt and return 420p a share to investors.

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