United PV to sell solar cells segment, disposes non-core asset to accelerate acquisition of solar power plants

United PV will focus on the acquisition and construction of large scale solar power plants
United PV will focus on the acquisition and construction of large scale solar power plants

United Photovoltaics Group Limited (Hong Kong, China), whose largest shareholder is China Merchants New Energy Group (CMNE), a leading solar photovoltaic (PV) power plant investor and operator in China, on August 28th, 2014 announced that the Company entered into a disposal agreement with Power Solar Investments Limited to sell the sale and manufacturing of solar silicon cells segment in Quanzhou, Fujian, at a cash consideration of HKD 217 million (approx. USD 28 Million).

Pursuant to the disposal agreement, the Company disposes 70% of the entire issued share capital of Fortune Arena to Power Solar. Fortune Arena is a wholly-owned subsidiary of the Company and is principally engaged in the sale and manufacturing of silicon solar PV cells.

Power Solar is wholly and beneficially owned by Chung Rai Lin, who is also the chairman of Cybermart International Holding Company. Cybermart is principally engaged in the sales of computers, communication and consumer electronic products and is operating about 30 chain stores in the PRC. Cybermart was previously a subsidiary of Foxconn Technology Group until mid-2014.

This transaction requires the approval of the disposal agreement and the transactions contemplated thereunder by shareholders at the special general meeting. The net proceeds from the disposal are intended to be applied to the capital expenditure and the general working capital for solar power plants operation.

“We are delighted to achieve substantial progress for the disposal of the factory, which encourages the Company to focus on the solar power business with consolidated resources,” said Zhenwei LU, Executive Director of United PV.

“In addition, the reflux of capital from the disposal will further enhance the Company’s liquidity, accelerating the acquisition of solar power plants.

 

Government supports solar power plants

WU Xinxiong, Director of the National Energy Administration, highlighted the importance of renewable energy by proposing to construct more large scale solar power plants in regions with rich solar resource, LU emphasizes.

At the executive meeting of the State Council of the PRC on August 27th, 2014, Premier LI Keqiang stated again to strengthen the development of clean energy by constructing a series of solar power plants, which matches with United PV’s key segment.

“We are committed to integrating China Merchants Group's internal and external resources by implementing an innovative business model to lead the industry. We will boost the acquisition and construction of large scale solar power plants and accelerate the development of distributed power plants, becoming the most effective professional operator in the solar power plant industry” LU concluded.

 

2014-08-29 | Courtesy: United Photovoltaics Group Limited | solarserver.com © Heindl Server GmbH

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