Nov 28, 2013 - Hong Kong-based solar cell maker Goldpoly New Energy (HKG:0686) said today it had agreed to acquire no less than 80% in 195 MW of solar power plants from Chinese developer GD Solar Co Ltd.
The framework agreement is part of Goldpoly’s plans, unveiled in August, to acquire upon completion 400 MW of solar parks from GD Solar. Under the current planned transaction, GD Solar will sell on behalf of project partners Guodian Inner Mongolia and Forty-eighth Research Institute at least 80% in the four companies which own the 195 MW of projects.
The solar plants are to be built by GD Solar. They are scheduled to start producing power by the end of this year.
Goldpoly and GD Solar will calculate the acquisition consideration depending on the on-grid power sale price that the assets receive once they are up and running. The internal rate of return on the total investment for Goldpoly shall not be below 9%, it noted. The total amount to be paid will be specified in a definitive sale and purchase agreement between the two parties, if they reach such.
The buyer has agreed to pay a deposit of HKD 100 million (USD 12.9m/EUR 9.5m) five business days after the signing of the framework agreement. If an equity transfer agreement is not signed within 90 days from the date of the payment, Goldpoly will get back double the amount of the deposit.
(HKD 1.0 = USD 0.129/EUR 0.095)
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