China Hydroelectric Corporation, a consolidator, developer and operator of small hydro projects, has signed definitive agreements to acquire a portion of the previously announced Minrui hydro projects in China's Yunnan Province, wire services reported.
CHC had previously announced the execution of a memorandum of understanding to acquire 100 percent of the Minrui group of projects, which included four operating hydroelectric projects aggregating 66 megawatts, three projects under construction aggregating 125 megawatts and the development rights to nine projects aggregating 341 megawatts.
The executed definitive agreements include three of these Minrui operating hydroelectric projects, totaling 55.5 megawatts, reports indicate. The new definitive agreements provide for the company to acquire the three operating hydroelectric projects for a purchase price of US$60.8 million (RMB415.3 million).
The acquisition is expected to be financed through cash on hand and bank financing expected to be provided under the terms of the company's previously announced Loan Framework Agreement with the Bank of China's Fujian Branch. The acquisition is subject to customary closing conditions, including obtaining governmental approvals.
CHC continues to work toward the completion of this acquisition and the pending acquisition of the 44-MW Xiaopengzu project, also in Yunnan Province, as well as on finalizing acquisitions of additional projects for which the company has entered into memoranda of understanding.
China Hydroelectric Corporation recently completed the purchase of the 19-MW Husahe hydropower project in China's Yunnan Province.
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