China Merchants New Energy Group (CMNE) has increased its stake in downstream PV projects firm, United Photovoltaics Group (United PV) to 19.18% of its issued share capital.
CMNE converted bonds in United PV totalling 282,483,750 shares at HK$1.0 per share, a premium of approximately 36.99% over the 90-day average price, according to the company.
CMNE said that the favourable government policies in China towards PV installations and growth would lead to further investments and shareholding in United PV in the future.
Zhenwei LU, executive director of CMNE, said: “The increase in shareholding through the conversion of convertible bonds fully demonstrates our optimism toward the investment value, business prospects and performance of the Company. Backed by the promotion of energy reform in China by President Xi Jinping, and the series of favourable government policies being rolled out, we believe United PV will continue its investment in and operation of solar power plants with excellent resources to gain remarkable development. In the future, CMNE will grasp the right opportunities to convert the convertible bonds to further increase its shareholding of United PV.”
As of the end of 2013, United PV was owner and operator of 531MW of PV projects.
United PV has not guided its acquisition or project pipeline targets for 2014 but with a number of deals in the making is estimated to be targeting completions in the range if 250MW to over 500MW this year.