United PV agrees to buy into owner of 40-MW Chinese solar park
Sep 8, 2014 - United Photovoltaics Group Ltd (HKG:0686) and Huabei Expressway Co Ltd (SHE:000916) have signed a deal in connection with their joint acquisition of an entity that owns a 40-MW solar plant in China.
As announced last month, Hong Kong-based solar power plants operator United PV and toll roads builder Huabei Expressway were negotiating such a transaction. The deal was signed on September 4, United PV said on Friday. Under the agreed terms, the latter will buy a 9.37% stake in Guodian Kezuohouqi Photovoltaics Co Ltd in exchange for a payment of CNY 7.49 million (USD 1.2m/EUR 943,000) in cash. In the meantime, Huabei Expressway will acquire an 84.31% interest in the same firm for about CNY 67.4 million. United PV will also have the chance to buy a portion of Huabei Expressway’s interest in the firm over a period of three years following completion. The seller is Jiangsu Yongneng New Energy Investment Ltd. Guodian Naiman Windpower Co Ltd will continue to hold the remaining shares in the target.
United PV said it will bankroll the transaction using its available cash resources. The company previously noted that, should the acquisition be implemented, Huabei Expressway will inject nearly CNY 298 million into the target while a unit of United PV will infuse a further CNY 33 million. This move would increase their stakes to 88.89% and 9.88%, respectively.
Guodian Kezuohouqi Photovoltaics owns a 40-MW ground-mounted solar park in China’s Inner Mongolia autonomous region. The vendor has guaranteed that the plant will meet certain annual electricity generation targets for a period of 20 years. Before the acquisition could be carried out, Naiman Windpower will need to enter into an operation and maintenance contract regarding the Inner Mongolia facility.
United PV pointed out its directors believe that the targeted plant shows good investment prospectus.