Under the deal, solarhybrid has taken over project holding companies Solar Millennium Capital GmbH and SM USA 2 GmbH. In addition to receiving the aforementioned project pipeline, solarhybrid now also holds a 70 percent stake in Solar Trust of America LLC. "All intercompany loans and other receivables from Solar Millennium AG to its US subsidiaries were also acquired," said solarhybrid in a statement released.
While it declined to disclose the purchase price, solarhybrid did say that payment will be linked to the achievement of certain milestones, such as the conclusion of power purchase agreements. It added, "Solar Millennium will receive an additional deferred payment, if individual projects from the U.S. power plant pipeline are resold. However, the power plants do not have to be realised by solarhybrid."
The deal was supposed to have been finalized back in November. However, solarhybrid said it required more time "for internal coordination and negotiation in the U.S." It was this reason which Solar Millennium cited as its need to file for insolvency on December 21.
Following todays news, solarhybrid and First Solar should now be looking to firm up their joint venture agreement, announced last November 17. According to the two parties, should the Solar Millennium photovoltaic pipeline acquisition go ahead, First Solar would supply its thin film modules to projects in Blythe, worth one GW and Palen, worth 500 megawatts.