March 14 (Renewables Now) - Investment holding firm China Smarter Energy Group Holdings Ltd (HKG:1004) said on Tuesday it has agreed to acquire the owner of a 300-MW solar park in the Ningxia autonomous region for CNY 849 million (USD 134.4m/EUR 108.7m).
Through its unit Shanghai Gorgeous Smarter Energy Co Ltd, China Smarter Energy has struck a deal to buy Ningxia Guxin Electricity Investment Co Ltd, which is a 70/30 joint venture between Shanghai Guxin Asset Management Co Ltd and Shandong Runfeng Group Co Ltd. The acquisition price consist of a CNY-834.8 million equity interest consideration and CNY 14.3 million of vendor's loans to the target company.
Based on its production capacity per Watt of CNY 9, the value of the grid-connected solar park in Ningdong is estimated at CNY 2.7 billion as of end-December 2017.
The transaction is in line with China Smarter Energy’s plan to expand on the Chinese solar market, it said, adding that it plans to focus on the strategic development of the solar power generation business and “devote more resources in such business” in future. At the end of last year, the company purchased a 100-MW grid-connected solar park in Gansu Province.
(CNY 1.0 = USD 0.158/EUR 0.128)