United PV eyes owner of 80 MW of Chinese solar projects
Nov 3, 2014 - United Photovoltaics Group Ltd (HKG:0686) plans to acquire a 51% stake in the owner of 80 MW of photovoltaic (PV) plants in China’s Xinjiang autonomous region for HKD 529.2 million (USD 68.2m/EUR 4.6m).
More precisely, the company said on Friday it had entered into a cooperation agreement with Shenzhen China Merchants Yinke Investment Management Ltd, also known as CM Yinke, to jointly acquire the entire project company from China Merchants Zhangzhou Development Zone Trenda Solar Ltd, or CM Trenda. The parties have not yet entered into a definitive agreement for the proposed takeover.
CM Yinke will hold a 49% interest in the target, named Changzhou Guangyu New Energy Co Ltd, following the takeover. The latter owns and operates a solar farm in Hami city and another one, located in the city of Turpan.
Under the terms of the cooperation deal, CM Yinke can sell part or all of its stake in the target company to United PV six months after the completion of the acquisition. United PV will pay for that transaction with own stock.
The latter also plans to issue HKD-529.2-million in convertible bonds to China Merchants Wealth Asset Management, or CM Wealth, so it could secure the funds for its initial purchase of the 51% interest. The notes will have a 7.5% annual coupon and will reach maturity three years following the date of issue. CM Wealth will be able to convert them into United PV shares six months after the placement at an initial conversion price of HKD 1.03 apiece.
Hong Kong-based United PV, former Goldpoly New Energy, makes polysilicon solar cells and since 2013 develops, invests in and operates solar power plants.