Chinese solar developer United Photovoltaics (UP) on Friday signed a deal to acquire a 90 per cent stake in a 20 MW project in Minfeng County developed by manufacturer ZNShine as well as paving the way for a further 30 MW scheme at the site.
The RMB 136.35 million ($22 million) deal will give UP a 90.9 per cent stake in Minfeng County Angli Photovoltaic Technology Company Ltd., a wholly-owned subisidary of ingot, wafer, cell and module maker and developer ZNShine.
As part of the deal, announced in an update to the Hong Kong Stock Exchange late on Friday, ZNShine will perform preparatory work on Phase II of the project in Xinjiang, with a view to performing EPC work on the latest, 30 MW, development.
The transaction is conditional upon ZNShine paying up the registered capital of its subsidiary to RMB150 million ($24 million) with a commitment by the new owners to then increase the registered capital to RMB196.9 million ($31.6 million) with UP footing RMB42.6 million of the bill and ZNShine the reamining RMB4.3 million.
Phase I of the Xinjiang project was connected at the end of 2014.