United PV targets minority in owner of 40-MW Chinese solar park

Aug 19, 2014 - United Photovoltaics Group Ltd (HKG:0686) and Huabei Expressway Co Ltd (SHE:000916) are holding talks to acquire an entity that owns a 40-MW solar plant in China.

Hong Kong-based solar power plants operator United PV said in a statement today it is negotiating the terms of a deal that would give it a 9.37% stake in Guodian Kezuohouqi Photovoltaics Co Ltd in exchange for a payment of CNY 7.5 million (USD 1.2m/EUR 915,000). At the same time, Chinese toll roads builder Huabei Expressway wants to buy an 84.31% interest in the same firm for about CNY 67.4 million.

If the transaction goes through, 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 Naiman Windpower Co Ltd will hold the remaining shares in Guodian Kezuohouqi Photovoltaics.

The United PV subsidiary 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.

Guodian Kezuohouqi Photovoltaics owns an operational 40-MW ground-mounted solar park in China’s Inner Mongolia autonomous region.

(CNY 1.0 = USD 0.163/EUR 0.122)

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