Chinese solar power plant operator, China Smarter Energy Group Holdings Limited (CSE) has agreed to acquire special purpose vehicle, Ningxia Guxin Electricity Investment Company Limited, which owns a 300 MW solar power project in Ningdong, in China’s Ningxia Hui Autonomous Region, from Chinese investment firm, Shanghai Guxin Asset Management Co., Ltd and China-based lithium battery manufacturer, Shandong Runfeng Group Co. Ltd.
CSE acquired the project for around CNY 849 million (approximately $134 million), while the project is currently valued at about CNY 2,700 million (9 CNY per W), the company said in its statement. It added that it will finance the operation through its own funds, and debt or equity financing.
“The Consideration for the Acquisition was determined after arm’s length negotiations between the Purchaser and Vendors principally taking into account, among other things, the development and maintenance costs, the availability of sunlight in the area of the Target Project, the rate of feed-in tariff and references to historical market comparable transactions,” CSE said.
A similarly large transaction was closed last November, when the Chinese group acquired a 100 MW solar power project in Jinchuan District, Jinchang City, Gansu Province.
In its latest financial results, published at the end of the same month, CSE said its operational solar power plant portfolio in China had reached 180 MW. All of its solar facilities are located in four provinces – Gansu, Anhui, Jiangxi and Shandong – and one municipality, Shanghai.
CSE, which was previously known Rising Development Holdings Limited, is headquartered in Wan Chai, Hong Kong. The company is also trading in fur garments and other products, while also investing in unlisted equities.