Reorg? JinkoSolar To Possibly Spin-Off Project Business

With the share price up over 360 percent in the last year, the Board of Directors at JinkSolar (JKS :NYSE) is considering  spinning off its downstream project business or offering an IPO for this business.

With JinkoSolar expecting to have over 500 megawatts (MW) of solar capacity installed by the end of 2014, the move could give investors the opportunity to profit from the project development’s growth potential without having to worry about the uncertainty of potentially unfavorable polysilicon contracts that have hurt the solar industry in the past.

The Board of Directors also alluded to the merger, or acquisition, of the downstream solar PV project business. But with JinkoSolar hardly strapped for cash, an acquisition doesn’t seem like a realistic option, especially with the Chinese government committed to improving its solar energy generation.

Selling off, or spinning off, a potentially high-growth division of the company didn’t sit well with investors today. Shares of JinkoSolar were down 5.65 percent in afternoon trading.