United PV has sold a 70% stake in its cell unit to concentrate on its PV project business.
In a statement to the Hong Kong stock exchange it revealed the trade for HK$217 million (US$27 million) from Power Solar Investments Limited for the group of companies that operates under the umbrella Fortune Arena Limited.
The pair had entered into a memorandum of understanding regarding the deal in June.
United will retain a 30% share but the company will no longer be considered a subsidiary and its financial results will not include the cell unit’s activities.
“Facing a deterioration of the business climate of solar cell industry, it is the Group’s strategy to deploy prudent control on the solar cell business of the Disposal Group,” the company’s statement said.
“On the other hand, the supporting policies within the solar energy industry from the PRC government and the declining cost and price for solar cell products have led to lower installation costs and a better return for solar power plant operators in the PRC.”