GCL-Poly Energy Holdings sells portfolio of power assets

Hong Kong-listed firm GCL-Poly Energy Holdings Ltd, advised by Morgan Stanley, has announced it has agreed to sell its non-solar power business for US$502 million.

According to a statement published by the company, through its unit Hank Rich Ltd, the company signed a sale and purchase agreement with Shanghai Qichen Investment Management Co Ltd. The purchaser is an investment holding company indirectly owned by a trust of which Mr. Zhu Gongshan and Mr. Zhu Yufeng (Directors of GCL Poly) and their family members are beneficiaries.

The deal includes 17 operational co-generation power plants, two incineration facilities and one wind park with a combined attributable installed capacity of 843.8 MW in China. The target also has a 360-MW cogeneration plant and one 36-MW incineration facility under construction, and a pipeline of projects under development.

GCL Poly explained that the transaction is due to significant fluctuations in the results of its non-solar business over the past few years, caused by a drop in utilisation hours of thermal power plants in China and falling prices.

After the transaction, the company will focus on the manufacturing and sale of polysilicon and wafers, as well as in the development, ownership and operation of solar photovoltaics (PV) farms at home and overseas.

The transaction is subject to obtaining shareholders’ and governmental approvals.