A subsidiary of United Photovoltaics Group, the Chinese solar investor and developer, has agreed to acquire 50% equity in joint venture, Tibet China-Automation New Energy Technology Co., Ltd, whose wholly-owned subsidiary Ningxia China-Automation Photovoltaics owns and operates a 200 MW solar PV plant in central China.
The transaction is estimated to be RMB 108,032,935.96 ($15.68 million) and shall be settled to Beijing Zhongteng IOT Technology, owner of the 50% stake in the joint venture company, in three cash installments.
The previous acquisition agreement was concluded in November 2016 based on the proviso that United Photovoltaics took hold of 50% interest in Tibet China-Automation New Energy Technology for the same amount of money.
Since the 200 MW project was connected to the grid back in June 2016, the Chinese group agreed the acquisition on April 24 so that it could raise revenue from the sale of electricity generated by the plant, as well as further expand the scale of its business in the PV sector.
The Hong Kong-listed group operates 1.29 GW of solar capacity at 31 locations throughout China and it is now positioned to step up its PV generation with new projects in its solar portfolio.