GCL New Energy announced yesterday to the Hong Kong Stock Exchange that it has struck deals for 661MW of large-scale PV in China, including a 500MW project in Hebei Province.
The Bermuda-incorporated company signed a “legally binding cooperation agreement” with heavy industrial manufacturing group Hebei Yuanchen, to develop and construct the 500MW project. In addition, GCL New Energy made a separate announcement that it has acquired Inner Mongolia Xiangdao Agricultural Development Company Limited, along with two projects, a 31MW PV project and a 130MW building-integrated PV (BIPV) project, both in Inner Mongolia.
The 500MW project will be built in Zhanjiakou, Hebei. No transaction has yet been made with the signing of the initial agreement and it is not clear what capacity the initial stages of the project will have, but an agreement has been made to ramp the capacity of the project to its immense 500MW scale within “three to five years” of Hebei Yuanchen obtaining land use rights pertaining to the project.
Meanwhile the purchase agreement for Inner Mongolia Xiangdao Agricultural Development Company Limited is worth RMB45.05 million (US$7.3 million) in initial purchase of target equity. On completion of the purchase however, GCL New Energy has agreed to inject capital into the acquired company. GCL will add RMB223.6 million (US$36.42 million) in capital, taking the target company’s total registered capital from RMB50 million (US$8.14 million) to RMB273.6 million (US$44.6 million).
GCL New Energy will take a 90.1% stake in the purchased company while Inner Mongolia Xiangdao will retain 9.9%. Both Inner Mongolia projects are in the city of Hohot. The deals remain subject to regulatory approvals and other factors, and a condition has been imposed by the seller that the projects both commence construction by 31 December of this year and are connected and selling electricity by the end of March 2015.