China’s EIH may buy 90% in over 1.1 GW of green plants

Wind turbine. Author: Susanne Nilsson. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

Hong Kong-based investment holding firm Energy International Investments Holdings Ltd (HKG:0353), or EIH, is planning to acquire a 90% stake in 1,127 MW of wind, solar and hydropower assets in China.

The company signed a memorandum of understanding (MoU) with the vendor -- Robust Trade Ltd -- for the proposed acquisition on September 16. Under the terms of the deal, it will take over the entire issued share capital and all shareholders’ loans of Reap More Ltd. The target will then acquire a 90% stake and co-invest in the renewable energy projects, details on which are available in the table below:

Project Co	Location	Plant	Status
Ningxia Dalishi Power Generation Co Ltd	Ningxia Hui Autonomous Region	40.5-MW wind farm	completed
Ningxia Dalishi Power Generation Co Ltd	Ningxia Hui Autonomous Region	49.5-MW wind farm	under construction
Ningxia Shenpeng New Energy Power Generation Co Ltd	Ningxia Hui Autonomous Region	148.5-MW wind farm	49.5-MW Phase I pending construction
Ningxia Dalishi Taiyangshan Power Generation Co Ltd	Ningxia Hui Autonomous Region	750 MW of wind, solar farms	obtained land use and planning permits
Ningxia Dalishi Solar Power Generation Co Ltd	Ningxia Hui Autonomous Region	80-MW solar farm	obtained government approvals and licenses
Shangri-La Geji River Hydro Power Development Co Ltd	Yunnan Province	46 MW HPP	2x13 MW completed, 20 MW pending construction
Lushui County Jinman River Hydro Power Development Co Ltd	Yunnan Province	12.6 MW HPP	completed

EIH chiefly supplies heat and electricity and is also active in the oil production and exploration and mining segments. Through the acquisition, it aims to lower its dependence on “traditional” power sources, it said Thursday.

The buyer stressed that the MoU is not legally binding and that a formal agreement, determining the exact terms and purchase consideration, is yet to be signed.

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