Through a letter of intent, Solar Partnership Capital Ltd has expressed its interest in buying out various assets from Sky Solar Holdings Ltd (ADR)(NASDAQ:SKYS). The global developer, owner, and operator of solar parks is seeking to obtain interests that it currently does not own in the 152 MW of solar Japanese projects from Sky Solar. The purchase which will cost JPY17 billion will have an attachment of certain specified liabilities that are associated with whatever project and which Solar Partnership must also respect.
With enthusiasm, Chief Investment Officer of Sky Solar, Mr. Sanjay Shrestha said that the arrangement between the two was for the best and also outlined the company’s commitment to developing the remaining projects in Japan. There are 74 MW completed solar projects and another 78 MW of solar projects are yet to be complete. Shrestha says that the company is working on a strategy of having the project’s value unlocked.
Completion of satisfactory due diligence and execution of the agreement
On the independent basis, the duo has shown commitment towards satisfying the conditions that will put the agreement to rest. Its exaction is expected to take place on 31 August when the Letter of Intent terminates even though there is a provision of extension so long the two parties are in agreement. The Solar Partnership’s investment committee also has a big contribution towards the determination of whether or not to close the transaction.
Proceeds from the sale will be plowed back into investment but in selected opportunities within Japan’s key markets. Some of it will go into repayment of certain existing loans.
The role of Sky Solar in the development of downstream solar market
For the longest time, possible Sky Solar has been focusing on the development of projects in the larger part of Asia, South America, Europe, North America and Africa. It has a broad global reach. Some of its fundamental pillars that it holds dear towards the delivery of its work include power pricing, land availability, regulatory environments, financial access and above all the power market trends. It has already developed 276 solar parks that has an aggregate capacity of 259.1 MW.
