Join Hands on Solar and Wind Power Projects
HONG KONG, Dec. 18, 2013 /PRNewswire/ -- China WindPower Group Limited ("CWP" or "the Company," and its subsidiaries "The Group," HK stock code: 182), announced a proposed private placement at HK$0.43 per share issued to China Huadian Corporation's subsidiary Huadian Fuxin Energy Corporation Limited ("Huadian Fuxin"). The number of new issue shares will be 880,000,000, approximately 9.9% of the issued share capital of the Company as enlarged by the Huadian Fuxin new placement and subscription. The above cooperation agreement will be effective upon approval by relevant regulatory authorities.
According to the agreement, both parties will cooperate on the development of wind power resource reserves owned by CWP, total capacity of 3.5GW. Huadian Fuxin will bring into play its investment and financing strength, while CWP will leverage its experience and capability in wind power engineering design and construction (EPC), as well as operation and maintenance, etc. to develop and manage the projects. CWP has the right to decide whether to take part in the above projects. With regard to the wind power projects developed by Huadian Fuxin, CWP reserves priority rights to provide EPC and maintenance services at prevailing market prices. On the solar power projects, CWP has the right to conduct assessment and take part in solar power projects developed and provided by Huadian Fuxin. As for the solar power projects developed by Huadian Fuxin, CWP also has the priority right to provide EPC and maintenance services at prevailing market prices.
Mr. Yang Zhifeng, Executive Director and CEO of CWP, said, "This collaboration with Huadian Fuxin will fully leverage the complementary strengths of both parties. The cooperation will accelerate the development of CWP's wind power and solar power resource reserves, as well as strengthen the Company's capital and financing capability while also enhance the Company's cash flow from providing EPC and maintenance services. All of which will help to ensure and expedite CWP's development of wholly owned solar power plants. On the other hand, through the co-operation with Huadian Fuxin on the solar power projects, CWP could further enlarge its solar power reserves, which provides an assurance to the rapid growth in investment in the attributable capacity of solar power plants."
