GCL-Poly Energy sells US solar project arm for USD 266m
Jul 26, 2012 - Hong Kong-based GCL-Poly Energy Holdings (HKG:3800) said today it had disposed of its 100% shareholding in its US solar project unit GCL Alpaugh Equity HoldCo to a New York-based renewable energy firm for USD 266 million (EUR 216m).
The unit holds 100% equity interest in two solar park projects in California, with a combined capacity of 92 MW, direct current (DC). An engineering, procurement and construction contractor is currently working on the projects, with completion expected by the end of the year. Both installations have 25-year power purchase agreements.
Net proceeds from the sale stand at USD 101 million. GCL-Poly is to use the amount to replenish working capital and finance future solar projects. It will also book a pre-tax gain of around USD 16 million
The buyer said that GCL Alpaugh Equity currently had around USD 250 million in total assets. It was established in April 2012 so it has not yet reported any revenues or profit.
The making of polysilicon and solar-grade wafers represents GCL-Poly’s major business. It said it was selling the US unit and respectively the 92 MW of projects to "take profit by realising part of its investment".