China Hydroelectric Corporation intends to purchase a trio of hydro assets in China’s Yunnan province totaling 78 MW.
China Hydroelectric Corporation, a consolidator, developer and operator of small hydroelectric power projects in China, announced that it has executed a definitive agreement to acquire a 44 MW hydroelectric project in Yunnan province. In addition, the company announced that it has also entered into memoranda of understandings to acquire two additional operating hydroelectric power projects aggregating 34 megawatts in Yunnan province.
Together with the definitive agreement, these memoranda present China Hydroelectric with the opportunity to acquire an additional 78 megawatts of generating capacity in Yunnan province.
The definitive agreement provides for China Hydroelectric Corp. to acquire the Xiaopengzu project in Yunnan province for a purchase price of US$57 million (RMB 390 million), to be financed partially through cash on hand and through the assumption or refinancing of existing non-recourse debt. The acquisition is subject to customary closing conditions, including obtaining governmental approval.
The memoranda of understanding provide China Hydroelectric Corp. with an exclusive right to pursue its due diligence of two additional operating hydroelectric projects in Yunnan. Subject to the satisfactory completion of its due diligence review, the company expects to enter into definitive agreements to acquire these projects in the near term.
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