The terms of the framework purchase agreement announces SPI Solar’s intention to acquire six photovoltaic projects currently under construction in China.
Solar Power, Inc. is set to become one of the largest solar developers in China.
SPI Solar has announced that its wholly owned subsidiary, SPI Solar Power Suzhou Co., Ltd., has entered into a framework purchase agreement with ZhongNeng GuoDian New Energy Development and Investment Jiangsu Co., Ltd.
The terms of the framework purchase agreement announces SPI Solar’s intention to acquire six photovoltaic projects currently under construction in China.
Yet another framework purchase agreement was signed with ZhongNeng GuoDian Green Ecological Cooperation and Development Jiangsu Co., Ltd. with the intention to acquire and equity interest in ZhongNeng New Energy.
“We are pleased to announce these agreements and our intention to acquire the six PV projects, comprising a total of 360 megawatts in China, and ZhongNeng New Energy, a proven PV project development platform with an excellent pipeline,” said Xiaofeng Peng, Chairman of SPI.
The six projects include a 40 MW project in Chifeng City, 60 MW in Kezuo County, 50 MW in Shangdu County, and 30 MW in Chayou County, all in Inner Mongolia, as well as a 130 MW project in Zhongwei City, Ningxia and 50 MW in Yanyuan County, Sichuan.
An initial deposit of $22.9 million in cash will be paid by November 20, 2014 to secure the agreement. The final purchase price for all the solar projects will be decided when the projects are completed.
Grid connection of the projects is expected to take place from the end of 2014 to the middle of 2015.
SPI Solar intends to acquire the 100 percent equity interest in ZhongNeng New Energy at an aggregate purchase price of $16.3 million, consisting entirely of SPI’s ordinary shares; 49 percent of the total consideration, or $8.0 million will be determined based on the Renminbi-to-U.S.-dollar exchange rate and closing price of SPI’s ordinary shares of U.S. $2.35 per share on October 22, 2014, or approximately 3.4 million ordinary shares, and 51 percent of the total consideration will be based on the five-day averages of the trading prices of SPI’s ordinary shares and Renminbi-to-U.S.-dollar exchange rates prior to the closing date of the acquisition.
Subject to the terms and conditions of the framework agreements, SPI Meitai Suzhou and ZhongNeng New Energy will enter into a definitive purchase agreement for the purchase of the six projects by March 31, 2015, and SPI Meitai Suzhou and ZhongNeng GuoDian will enter into a definitive purchase agreement for the acquisition of ZhongNeng New Energy within five days thereafter. – EcoSeed Staff
