Hong Kong, China [RenewableEnergyWorld.com] Hong Kong Energy Limited (HKE) has entered into an agreement with its parent company, HKC Holdings Limited (HKC) to acquire a 25% beneficial interest in HKE Wind Power Limited for a total consideration of RMB 73.5 million.
Upon completion of the acquisition, HKE would have an effective equity interest of 10% of the project company holding the Danjinghe Wind Farm.
The consideration of RMB 73.5 million represents about a 25% discount on the preliminary business valuation of the 10% effective equity interest of the project company holding the Danjinghe Wind Farm as at 31 October 2009, which is valued at RMB 98 million by an independent valuer.
The consideration will be settled by the issuance of a convertible note to HKC. The term of the convertible note is 3 years and the conversion price will be the higher of HK $1 and the average closing price of HKE for five trading days following the date of announcement with a premium of 30% subject to adjustments.
The Danjinghe Wind Farm, which covers an area of approximately 103 square kilometers (km) in Hebei Province, is approximately 300 km north of Beijing and includes a 200 megawatt capacity wind power generation plan.