Shunfeng offloads 11 solar farms in China to cut debt
Solar modules in China. Featured Image: zhu difeng/Shutterstock.com
Shunfeng International Clean Energy Ltd (HKG:1165) said earlier this week it had reached an agreement to sell 11 solar parks in China to China National Nuclear Power Co Ltd (SHA:601985) in a bit to lower its debt levels.
CNNP, through one of its subsidiaries, has agreed to acquire the solar farms for a total amount of CNY 641 million (USD 96m/EUR 87m).
Shunfeng expects to book an unaudited loss before taxation of about CNY 705 million on the disposals. Proceeds from the sale will be used for repay debt as well as to cover power generation and construction fee costs and supplement the company's working capital.
The asset sales need to be approved by Shunfeng's shareholders at an extraordinary general meeting, the company said, noting the agreements were subject to certain conditions and that there was no guarantee they would proceed.