(Yicai Global) Dec. 21 -- Xinjiang Goldwind Science and Technology, one of China’s biggest wind turbine makers, is reducing its holdings in an Australian wind farm that it once completely owned to just 2 percent to ease cash flow woes

Unit Goldwind Stockyard Hill Wind Farm is selling 49 percent equity in Stockyard Hill Wind Farm to Cheetah Bid Trust, a trust set up by an Australian fund manager for this purchase, the Beijing-based company said yesterday. After the transaction, Goldwind’s share will be slashed to 2 percent from 51 percent.

The price of the deal is estimated to be in the region of AUD334.6 million (USD223.4 million) once the wind farm’s debt and other factors have been taken into account. The two parties had agreed that the full asset value is AUD688.7 million as of Dec. 31 this year.

The subsidiary picked up 100 percent of the wind farm project in Victoria for AUD110 million in 2017 and construction began in June 2018. With a planned installed capacity of 530 megawatts, capable of meeting the electricity needs of 400,000 households, it is the largest wind farm developed by Goldwind.

However, due to its own liquidity issues, Goldwind soon began to exit the project. In November 2019, Goldwind decided to sell a 49 percent stake to Nebras Power Australia, which is owned by the Qatari state, for AUD159.8 million.

Goldwind’s stock price [SHE:002202] dipped 1.1 percent to close at CNY10.83 (USD1.50), while its Hong Kong-traded shares [HKG:2208] tumbled 2.2 percent to end the day at HKD6.94 (USD0.89).

Editor: Kim Taylor