US-based solar energy company First Solar has agreed to divest two of its solar assets in Japan to funds managed by PAG Real Assets (PAG).
Under a definitive agreement signed by the two companies, PAG will acquire First Solar’s 293MWdc utility-scale solar project development platform and a solar operations and maintenance (O&M) platform with nearly 665MWdc of capacity.
The financial details of the agreement have not been disclosed.
PAG is a private investment management firm focused on the Asia-Pacific (APAC) region. The company has more than $50bn in assets under management.
First Solar CEO Mark Widmar said: “PAG’s commitments to integrity, transparency and sustainability, and its experience managing and operating a wide range of assets, make it the ideal acquirer of our industry-leading platforms in Japan.
“The sale of these platforms marks the completion of First Solar’s strategic shift to focus on developing, scaling and selling our advanced module technology.”
The project development platform deal is expected to close in the second quarter of this year, while completion of the O&M platform deal is slated for the second half of the year.
Once the project development platform transaction is completed, PAG is expected to add it to its existing portfolio of solar farms in Japan.
This will create one of Japan’s largest renewable operators, with more than 600MWdc of capacity.
Once both deals are completed, the majority of First Solar’s project development and O&M employees in Japan will join PAG.
PAG president and executive director Jon-Paul Toppino said: “First Solar has an unmatched reputation in this region and we are pleased to have such an experienced, professional team join the PAG family.
“This transaction further positions PAG as a leading player in renewable energy in Japan and will serve as a key building block for our future investment in the sector.”