Shunfeng International Clean Energy Limited today announced it has signed an agreement to sell 100% equity interest in a wholly-owned subsidiary that owns and operates 9 solar projects in China to Chongqing Future Investment Co. Ltd. for a cash consideration of approximately RMB 1.2 billion.
According to the terms of the agreement, RMB650 million will be payable to SFCE within 3 days after the completion of the reorganization of the related subsidiaries, approximately RMB500 million will be payable by 30 June 2016, and the remainder will be payable within 3 years, subject to certain terms and conditions. The total consideration for the solar projects will be subject to the completion of an independent valuation.
"We are delighted to finalize this agreement and build a partnership with Chongqing Future Investment Co.," said Eric Luo, SFCE's CEO. "With the ongoing development and maturation of China's solar market, more and more companies and investors are entering the clean energy market. We are adapting to this trend and earlier this year we announced that we would transform our business to focus on delivering comprehensive solar solutions, including integrated EPC, development and operation and maintenance services, so that we could provide completed solar projects to investors as standardized fixed income products. This agreement with Chongqing Future Investment clearly demonstrates our progress towards this new business model."