June 5 (Renewables Now) - State-owned power company China Huaneng Group is discussing the purchase of a 51% stake in solar power producer GCL New Energy Holdings Ltd (HKG:0451), or GNE.
A “Cooperation Intent Agreement” has been signed on Monday by China Huaneng unit China Hua Neng Group Hong Kong Ltd and Elite Time Global Ltd, a company that holds a stake of 62.28% in GNE. It describes the possible sale of a majority stake of almost 9.73 billion GNE shares to China Hua Neng Group.
Elite Time Global is a wholly-owned subsidiary of GCL-Poly Energy Holdings Ltd (HKG:3800). The latter pointed out that the discussions are at a preliminary and exploratory stage.
At the end of 2018, GNE operated 7.3 GW of solar power plants, mainly in China, but also in the US and Japan. Last month it announced a deal to sell controlling stakes in 19 Chinese solar power plants with a total capacity of 977 MW, in line with a decision to pursue an asset-light model.