China Hydroelectric Corporation has signed definitive agreements to acquire three operating hydroelectric projects with a total capacity of 55MW, part of the Minrui group of projects in Yunnan province of the PRC.
The Company had previously announced the execution of a MoU to acquire 100% of the Minrui projects, which included four operating hydroelectric projects aggregating 66MW, three projects under construction aggregating 125MW, and the development rights to nine projects aggregating 341MW.
The new definitive agreements however provide for the Company to acquire the three operating projects for a purchase price of US$60.8M. This acquisition, which is expected to be consummated shortly, 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. This acquisition is subject to customary closing conditions, including obtaining governmental approvals.
The Company continues to work towards the consummation of this acquisition and its previously announced pending acquisition of the 44MW Xiaopengzu Project, also in Yunnan province, as well as on finalizing acquisitions of additional projects for which the Company has entered into memorandum of understanding.