Huaneng to buy GCL New Energy parks in China

China Huaneng Group will not be buying a majority stake in solar power producer GCL New Energy Holdings Ltd (HKG:0451), or GNE, as previously expected, but it may acquire from the latter solar parks in China.

In June, the state-owned power company signed a “Cooperation Intent Agreement” with Elite Time Global Ltd, a company that holds a stake of 62.28% in GNE, for the possible sale of almost 9.73 billion GNE shares to China Hua Neng Group, a unit of Huaneng. This Monday, GNE and its indirect parent GCL-Poly Energy Holdings Ltd (HKG:3800) said that agreement has been terminated as several rounds of friendly negotiations did not result in a formal agreement.

The parties signed a new “Cooperation Framework Agreement” yesterday, under which GNE is to sell to China Huaneng “certain solar power plants” or the project companies which operate these. Details are not yet available as the parties will now work to enter into definitive agreements.

At the end of June, 2019, GNE had 7.2 GW of solar power capacity, mainly in China, but also in the US and Japan, according to its interim report. Its first-half revenues reached CNY 3.17 billion (USD 451.4m/EUR 408m).

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