- Sky Solar signs Letter of Intent to sell its interests in 152 MW of operating, under-construction, and shovel-ready solar projects in Japan, with expected consideration of JPY17 billion, subject to closing adjustments
- Proceeds to be reinvested in additional solar projects in Japan, as well as other key target markets that meet Sky Solar’s investment return criteria.
- Close of transaction is subject to completion of satisfactory due diligence and approval by Solar Partnership’s investment committee and execution of definitive documents.
HONG KONG, Aug. 17, 2016 (GLOBE NEWSWIRE) -- Sky Solar Holdings, Ltd. (NASDAQ:SKYS) (“Sky Solar” or the “Company”), a global developer, owner and operator of solar parks, today announced that the Company entered into a Letter of Intent with Solar Partnership Capital Ltd (“Solar Partnership” or “SPC”), a non-affiliate of the Company in certain Japanese projects, pursuant to which 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 (the “Transaction Assets”) for a total purchase price of JPY17 billion (approximately $US165 million), subject to certain standard closing adjustments. All the other assets and liabilities of SSJ that do not constitute 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 SPC’s existing tokumei kumiai investment 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.”
About Sky Solar Holdings, Ltd.
Sky Solar is a global independent power producer (“IPP”) that develops, owns and operates solar parks and generates revenue primarily by selling electricity. Since its inception, Sky Solar has focused on the downstream solar market and has developed projects in Asia, South America, Europe, North America and Africa. The Company's broad geographic reach and established presence across key solar markets are significant differentiators that provide global opportunities and mitigate country-specific risks. Sky Solar aims to establish operations in select geographies with highly attractive solar radiation, regulatory environments, power pricing, land availability, financial access and overall power market trends. As a result of its focus on the downstream photovoltaic segment, Sky Solar is technology agnostic and is able to customize its solar parks based on local environmental and regulatory requirements. As of March 31, 2016, the Company had developed 276 solar parks with an aggregate capacity of 259.1 MW and owned and operated 133.1 MW of solar parks.
Safe-Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the quotations from management in this press release and the Company's operations and business outlook contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: the reduction, modification or elimination of government subsidies and economic incentives; global and local risks related to economic, regulatory, social and political uncertainties; resources we may need to familiarize ourselves with the regulatory regimes, business practices, governmental requirements and industry conditions as we enter into new markets; global liquidity and the availability of additional funding options; the delay between making significant upfront investments in the Company's solar parks and receiving revenue; expansion of the Company's business into the U.S. and China; risk associated with the Company's limited operating history, especially with large-scale IPP solar parks; risk associated with development or acquisition of additional attractive IPP solar parks to grow the Company's project portfolio; and competition. Further information regarding these and other risks is included in Sky Solar's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.