January 22 (Renewables Now) - Chinese solar power producer GCL New Energy Holdings Ltd (HKG:0451), or GNE, has agreed to offload a portfolio of 294 MW of photovoltaic (PV) assets at home to compatriot China Huaneng Group.
The deal was announced on Tuesday by GNE’s indirect parent GCL-Poly Energy Holdings Ltd (HKG:3800). The parties have signed a share purchase agreement to carry out the sale as a debt-for-equity swap with two Huaneng equity investment funds. Those will acquire six companies that own the portfolio of seven solar parks for around CNY 1.08 billion (USD 156.4m/EUR 141m).
Funds from the transaction, which is expected to be completed within five days, will help GNE cut its debt. According to the statement, the company plans to “reach and execute more agreements in relation to disposals of solar power plants in the near future” together with China Huaneng.
China Huaneng last summer unveiled a cooperation intent agreement for the possible purchase of almost 9.73 billion GNE shares but later terminated that process, saying it could acquire certain solar power plants of GNE.
(CNY 1.0 = USD 0.145/EUR 0.131)