A subsidiary of Chinese photovoltaic manufacturer JinkoSolar Holding has signed an agreement to sell its 50% stake in Sweihan Solar to Jinko Power HK.
The selling company, JinkoSolar Sweihan, owned half of Sweihan Solar Holding. In turn, this company owns a project company that operates the 1.2GW Sweihan photovoltaic solar farm in Abu Dhabi, UAE. The shares and debt transaction will see Jinko Power HK, a subsidiary of Jinko Power Technology, acquire a 50% stake in the holding company.
Upon completion of the deal, Jinko Power will indirectly own a 20% stake in the Sweihan PV Power Company.
JinkoSolar and Marubeni Corporation formed a consortium in September 2016 to win the project bid. Initially, energy generated by the solar power facility will power Emirates Water and Electricity Company (EWEC) for 25 years.
JinkoSolar CEO Kangping Chen said: “We are glad to have reached this agreement with JinkoPower. This divestiture will help JinkoSolar focus on its core business, enhance our strength and further sustain our long term growth in the global photovoltaic industry.”
Completion of the deal is subject to approvals by EWEC, as well as other shareholders of Sweihan Holding, Sweihan PV Power Company and the project finance lenders.
Financial details of the deal have not been disclosed by any of the involved companies.
In August this year, JinkoSolar Holding secured a contract for the supply of almost 1GW of solar modules. Shanghai Electric commissioned them to power Phase V of the Dubai Electricity and Water Authority’s solar park.