Sky Solar Holdings, a global developer, owner and operator of solar parks, has announced that the company entered into a Letter of Intent with Solar Capital, a non-affiliate of Sky Solar in certain Japanese projects.
Pursuant to the Letter of Intent, Solar Partnership confirmed its intention to acquire interests it currently does not own in 152 MW of solar projects from Sky Solar Japan K.K. (SSJ) and to take on certain specified liabilities associated with respect to those projects for a total purchase price of JPY17 billion ($US165 million), subject to certain standard closing adjustments. All the other assets and liabilities of SSJ that do not constitute the transaction assets will be transferred to a new entity.
The proceeds from the transaction are expected to be used to repay certain existing loans that were provided as part of Solar Capital’s existing tokumei kumiai investment (TK or silent partnerships) in SSJ, as well as to invest in selected opportunities in Japan and other key target markets.
Closing of the transaction is subject to approval by Solar Partnership’s investment committee, completion of satisfactory due diligence and mutual agreement and execution of definitive documents. The Letter of Intent terminates on August 31, 2016 but it may be extended by mutual consent. Both parties are working diligently to satisfy the conditions as quickly as possible.
Mr. Sanjay Shrestha, Chief Investment Officer of Sky Solar, and President of Sky Capital America commented:
“We are very pleased to announce the potential sale of part of our solar asset portfolio in Japan. Through this transaction, we remain committed to the development of our remaining projects in Japan while also unlocking value from our 74 MW of completed solar projects and 78 MW of solar projects that have not yet been completed in Japan. With the cash proceeds from this deal, we intend to further invest in solar development projects in Japan and other key target markets that meet our investment return criteria.”