SPI eyes 360 MW more of solar buys in China, project company too
Solar park. Author: Michael Mees. License: Creative Commons, Attribution 2.0 Generic
Oct 24, 2014 - US firm SPI Solar (OTCMKTS:SOPW) today unveiled a couple of new deals through a Chinese unit, agreeing to buy 360 MW of local photovoltaic (PV) schemes along with a project development company.
SPI Solar Power Suzhou Co Ltd, also called SPI Meitai Suzhou, has signed a framework agreement to acquire ZhongNeng GuoDian New Energy Development and Investment Jiangsu Co Ltd from ZhongNeng GuoDian Green Ecological Cooperation and Development Jiangsu Co Ltd for CNY 100 million (USD 16.3m/EUR 12.9m) in own stock.
Separately, SPI Meitai Suzhou has agreed to buy six PV projects that are currently being built in China from the same company. This transaction would involve the purchase of a 40-MW scheme in Chifeng City, 60 MW in Kezuo County, 50 MW in Shangdu County and 30 MW in Chayou County, all in Inner Mongolia. Also, the firm will buy a 130-MW project in Ningxia and a 50-MW development in Sichuan.
SPI Meitai Suzhou expects to pay a CNY-140-million deposit in cash by November 20 so it could seal a definitive deal on the project buys by the end of March 2015. The final payable consideration will be determined once the projects are completed and further due diligence is conducted. These solar parks are expected to be hooked to the grid by mid-2015.
The US company, which is majority-owned by China's LDK Solar Co Ltd (NYSE:LDK), stressed it intends to make more acquisitions of PV schemes through SPI Meitai Suzhou. Just yesterday, it announced that the specific investment vehicle had agreed to jointly develop 1.5 GW of solar projects in China with local peer GD Solar Co Ltd and, at the same time, buy a total of 160 MW of operational solar parks from it. GD Solar is owned by Guodian Technology & Environment Group Corp Ltd (HKG:1296).