(Yicai Global) Sept. 3 -- Chinese solar park developer Akcome Technology will sell equities in almost 30 photovoltaic power stations to state-owned Zhejiang Provincial Energy Group to ease debt distress.
Akcome signed a CNY2.4 billion (USD351.9 million) equity cooperation agreement with counterparties, the Jiangsu province-based solar park firm said in a statement yesterday. The company proposed to sell all shares in 12 subsidies including Zhejiang Ruixu Investment, as well as a 99.75 percent stake in Xinjiang Juyang Energy Technology and a 70 percent stake in JCS Solar Bole. The deal will trim debts by CNY2.3 billion.
The pair is also planning to partner in more ways, as ZPEG's affiliate Zhejiang Zheneng Electric Power will become a strategic investor in Akcome and the firms will jointly invest in an ultra-high efficiency heterojunction battery components project.
The National Development and Reform Commission and other two national authorities cut solar power tariffs in late May, which led to steep falls in photovoltaic power stocks across the board.
The stock transfer agreement involves 28 photovoltaic power stations, including 19 ground stations with a combined capacity of 480 megawatts, and nine distributed stations of 23.53 MW. These solar farms are located in Zhejiang, Shandong, Anhui and Jiangxi provinces, Inner Mongolia and in Xinjiang Uighur Autonomous Region. Before the transaction, the seller owns the capacity of 479.38 MW in total.
Akcome's asset structure will improve substantially after the deal in terms of increased profits and cash flow and lowering debts, asset-debt ratio and financial costs, enhancing the listed company's asset liquidity, the firm said.
Editor: Emmi Laine