Chinese smart energy takeover expands solar power business
May 9, 2017
To expand its solar energy business, LongiTech Smart Energy, an operator of smart energy cloud platforms in China, has acquired the entire equity interests of Guangshuo New Energy for HK$130m.
Guangshuo New Energy owns and operates seven distributed photovoltaic power stations in China with a total installed capacity of 23.51MW.
Distributed photovoltaic power stations are an important constitution of the solar energy business of LT Smart Energy. Thus, the acquisition will increase the quantity of the distributed photovoltaic power stations of the company in China, further contributing earnings and cash flows and complementing its solar energy business.
"The acquisition of Guangshuo New Energy is an important measure following the company's announcement of developing the clean energy business where photovoltaic power stations play an important role in the solar energy segment of the company,” said Wei Qiang, CEO of LT Smart Energy. “At present, the company's solar energy business segment is focused on distributed photovoltaic power stations and home photovoltaic systems.”
The company has three photovoltaic solar power stations with a total installed capacity of 30MW. The acquisition of Guangshuo New Energy will include the seven distributed photovoltaic power stations, diversifying the company's focus from solar energy business to distributed power stations to better cope with market changes, increase the operating income of the company and strengthen the overall business capabilities and investment value.
Guangshuo New Energy was established in 2014 and is principally engaged in developing and operating photovoltaic power stations. It operates seven distributed photovoltaic power stations in China at Bai Yang Dian Mei Lu Zhuang Yuan, Gao Bei Dian Chest Hospital, Gao Cheng Xing An, Bai Gou Xin Cheng, Guang Dong Jiang Men Ling Zhi, Hong Ze Bao Li Jia and Hong Ze Yu Tian Gang Bo.
LongiTech Smart Energy operates smart energy cloud platforms in China. Through the big energy data centre of its smart energy cloud platform and the development model of a light asset business with data and knowledge at its core, it provides energy consumers with all-round smart services, including distributed energy, power trade, smart operation, energy monitoring and maintenance, and other value-added services.
The acquisition will be satisfied by the company through the issuance of 44,820,000 consideration shares at the issue price HK$2.9 per share.