JinkoSolar To Offload Downstream Business In China

Posted by Joseph Bebon on October 11, 2016 No Comments
Categories : New & Noteworthy

JinkoSolar has announced that Wide Wealth Group Holding Ltd., a 55%-owned indirect subsidiary of the company, has entered into a share purchase agreement (SPA) with Shangrao Kangsheng Technology Co. Ltd., a company formed by a buyer consortium led by Xiande Li, chairman of the board of directors of JinkoSolar.

Subject to satisfaction or waiver of the SPA’s terms and conditions, the buyer will acquire all of the 55% equity interest indirectly held by JinkoSolar in Jiangxi JinkoSolar Engineering Co. Ltd., a developer and operator of solar power projects in the China, for a total consideration of US$250 million in cash. Through this transaction, JinkoSolar will spin off all its downstream business of Jinko Power and get US$250 million in cash. The transaction is currently expected to close during the fourth quarter of this year. The buyer intends to fund the purchase price with personal funds and debt financing.

JinkoSolar’s board, acting upon unanimous recommendation of a special committee, unanimously approved the SPA and the transactions contemplated thereby. The special committee, which consists solely of independent and disinterested directors, negotiated the terms of the SPA with the assistance of its financial and legal advisors.

In connection with the execution of the SPA and the performance of the transactions contemplated thereby, Duff & Phelps LLC is serving as financial advisor to the special committee; Cleary Gottlieb Steen & Hamilton LLP is serving as U.S. legal advisor; and Jun He Law Offices is serving as PRC legal advisor.

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