GCL New Energy to take 90% in 161 MW of Chinese PV schemes

Oct 7, 2014 - Chinese firm GCL New Energy Holdings Ltd (HKG:0451) said Monday it will purchase a 90.1% stake in the owner of 161 MW of local photovoltaic (PV) projects for CNY 45.05 million (USD 7.3m/EUR 5.8m).

The printed circuit boards maker, which is expanding into the downstream renewable energy field, explained that the purchase is in line with its strategy to invest in and build solar power stations. In end-August GCL New Energy said it was acquiring majority stakes in 250 MW of solar projects in China through two separate deals.

As part of the latest agreement, the company’s wholly-owned subsidiary Suzhou GCL New Energy Investment Co Ltd will buy the majority stake in Inner Mongolia Xiangdao New Energy Development Co Ltd from Inner Mongolia Xiangdao Agricultural Development Co Ltd. The target owns a 130-MW building-integrated photovoltaic (BIPV) scheme and a 31-MW solar PV project in the city of Hohhot, Inner Mongolia.

The deal also envisages both the buyer and the vendor to raise the capital of the target company from CNY 50 million to CNY 273.6 million. In accordance with its stake in the project owner, Suzhou GCL will have to infuse CNY 201.46 million. The acquisition is currently pending regulatory approvals.

Also yesterday, GCL New Energy said it had agreed with Hebei Yuanchen Group Co Ltd to collaborate on the development of a 500-MW solar PV project in Hebei province.

(CNY 1.0 = USD 0.163/EUR 0.129)

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