March 29 (Renewables Now) - Chinese solar power producer GCL New Energy Holdings Ltd (HKG:0451) on Thursday said it has agreed to dispose of a 55% interest in three subsidiaries that together own 280 MW of photovoltaic (PV) parks in China.
The stake will be sold by Suzhou GCL New Energy and Henan GCL New Energy, both units of the solar power producer, while the buyer is Wuling Power. The parties have signed a share transfer contract, agreeing on a selling price of CNY 246.4 million (USD 36.6m/EUR 32.5m).
By selling the particular interest in Xinan GCL, Ruzhou GCL and Jiangling GCL, GCL New Energy will be able to get around CNY 246 million net, which will go to improve the company’s current cash flow position and repay debt. Following the deal, seen to be completed on March 31, GCL New Energy will continue to operate and maintain the 280-MW solar portfolio.
Wuling Power is a joint venture of China Power International Development Ltd (HKG:2380) and Hunan Xiangtou International Investment Ltd. The entity is primarily involved in the hydropower sector.
(CNY 1.0 = USD 0.148/EUR 0.132)