Beijing Enterprises Holdings sheds 85% in PV project unit

Sep 16, 2013 - Beijing Enterprises Holdings Ltd (HKG:0392) said Monday it would dispose of an 85% stake in solar project developer Beijing Enterprises Green Industry (Qinghai) New Energy Co Ltd for CNY 110.2 million (USD 18m/EUR 13.5m).

The buyer is Beijing Instrument Industry Group Co.

Beijing Enterprises Holdings is a Hong Kong-based company focused on the gas, water and brewery sectors. It explained that photovoltaic (PV) power projects required significant investment and had a long payback period which goes against the company’s development strategies. The firm is selling the stake through its non-fully-owned subsidiary Beijing Enterprises Green Industrial Investments Ltd which will keep a 15% interest in the target entity after the sale.

Both the selling and the buying parties are part of the Beijing Enterprises Group.

Beijing Enterprises Green Industry (Qinghai) New Energy’s unaudited net asset value on June 30 was CNY 125.6 million. Apart from PV projects, the company is also involved in the marketing and sales of PV products in China. It posted a net profit of CNY 2.25 million in the first half of 2013 after a CNY-3.8-million loss for the whole of 2012.

(CNY 1 = USD 0.163/EUR 0.122)

Choose your newsletter by Renewables Now. Join for free!