SPI Solar Power Suzhou has signed a framework purchase agreement with ZhongNeng GuoDian New Energy Development and Investment Jiangsu for the acquisition of six PV projects under construction in China.
SPI Solar Power Suzhou also signed another framework purchase agreement with ZhongNeng GuoDian Green Ecological Cooperation and Development Jiangsu ZhongNeng GuoDian to acquire a stake in ZhongNeng New Energy.
SPI chairman Xiaofeng Peng said: "We are pleased to announce these agreements and our intention to acquire the six PV projects, comprising a total of 360MWs in China, and ZhongNeng New Energy, a proven PV project development platform with an excellent pipeline.
"By adding these projects to our portfolio and acquiring this development company, we expect to increase our scale and future cash flows and expand our development capabilities in key strategic regions, strengthening SPI Solar's leading position as one of the largest PV development companies in this market."
SPI Meitai Suzhou plans to buy the six projects under construction in China from ZongNeng GuoDian.
These projects comprise a 40MW project in Chifeng City, 60MW in Kezuo County, 50MW in Shangdu County, and 30MW in Chayou County, all in Inner Mongolia. This is in addition to a 130MW project in Zhongwei City, Ningxia and 50MW in Yanyuan County, Sichuan.
Connection to the grid of these projects is expected to happen from the end of 2014 to the middle of 2015.
SPI Meitai Suzhou will pay a deposit of CNY140m ($22.9m) in cash by 20 November to secure the agreement. The final acquisition price for these projects will be decided following further due diligence when the projects are completed.
SPI Solar plans to buy full stake in ZhongNeng New Energy for CNY100m ($16.3m).
ZhongNeng New Energy and SPI Meitai Suzhou will enter into a definitive agreement for the purchase of the six projects by 31 March 2015. Meanwhile SPI Meitai Suzhou and ZhongNeng GuoDian will enter into a definitive agreement for the acquisition of ZhongNeng New Energy within five days after that.
Using SPI Meitai Suzhou as an investment platform, SPI Solar intends to buy PV projects.