Solargiga to boost stake in 20-MW PV plant

Sep 3, 2013 - Chinese photovoltaics (PV) maker Solargiga Energy Holdings Ltd (HKG:0757) said Monday it would lift to 70% its stake in a 20-MW solar park in China's Qinghai province.

More specifically, the via a CNY-22.8-million (USD 3.7m/EUR 3m) deal involves the buy of an additional 21% stake in the solar farm’s operator Golmud Solargiga Energy Electric Power Co from investor Wang Ji-bin. The target company is focused on the construction of photovoltaic (PV) parks and the sale of solar modules. Prior to the acquisition agreement, Solargiga held 49% in Golmud Solargiga Energy.

The acquisition comes in line with Solargiga’s efforts to achieve vertical integration. The company is mainly focused on the manufacturing of mono- and multicrystalline silicon solar ingots and wafers, solar cells and modules, while it also designs and builds solar parks.

The target company’s 20-MW solar facility has been put online at end-2011 and is producing around 33 million kWh annually. All output is sold under local feed-in tariffs of CNY 1.15 per kWh. Golmud Solargiga Energy had a net asset value of CNY 103.7 million at the end of 2012. Its net profit last year amounted to CNY 3.7 million.

(CNY 1 = USD 0.163/EUR 0.124)

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