Sky Solar Holdings, Ltd. Announces Potential Sale of Certain Assets Held by Sky Solar Japan
August 17 2016 - 8:30AM
Sky Solar Holdings, Ltd. (NASDAQ:SKYS) (“Sky Solar” or the
“Company”), a global developer, owner and operator of solar parks,
today announced that the Company entered into a Letter of Intent
with Solar Partnership Capital Ltd (“Solar Partnership” or
“SPC”), a non-affiliate of the Company in certain Japanese
projects, pursuant to which Solar Partnership confirmed its
intention to acquire interests it currently does not own in 152 MW
of solar projects from Sky Solar Japan K.K. (“SSJ”) and to take on
certain specified liabilities associated with respect to those
projects (the “Transaction Assets”) for a total purchase
price of JPY17 billion (approximately $US165 million), subject to
certain standard closing adjustments. All the other assets and
liabilities of SSJ that do not constitute Transaction Assets will
be transferred to a new entity.
The proceeds from the transaction are expected
to be used to repay certain existing loans that were provided as
part of SPC’s existing tokumei kumiai investment in SSJ, as well as
to invest in selected opportunities in Japan and other key target
markets.
Closing of the transaction is subject to
approval by Solar Partnership’s investment committee, completion of
satisfactory due diligence and mutual agreement and execution of
definitive documents. The Letter of Intent terminates on August 31,
2016 but it may be extended by mutual consent. Both parties are
working diligently to satisfy the conditions as quickly as
possible.
Mr. Sanjay Shrestha, Chief Investment Officer of
Sky Solar, and President of Sky Capital America commented, “We are
very pleased to announce the potential sale of part of our solar
asset portfolio in Japan. Through this transaction, we remain
committed to the development of our remaining projects in Japan
while also unlocking value from our 74 MW of completed solar
projects and 78 MW of solar projects that have not yet been
completed in Japan. With the cash proceeds from this deal, we
intend to further invest in solar development projects in Japan and
other key target markets that meet our investment return
criteria.”
About Sky Solar Holdings,
Ltd.
Sky Solar is a global independent power producer
(“IPP”) that develops, owns and operates solar parks and generates
revenue primarily by selling electricity. Since its inception, Sky
Solar has focused on the downstream solar market and has developed
projects in Asia, South America, Europe, North America and Africa.
The Company's broad geographic reach and established presence
across key solar markets are significant differentiators that
provide global opportunities and mitigate country-specific risks.
Sky Solar aims to establish operations in select geographies with
highly attractive solar radiation, regulatory environments, power
pricing, land availability, financial access and overall power
market trends. As a result of its focus on the downstream
photovoltaic segment, Sky Solar is technology agnostic and is able
to customize its solar parks based on local environmental and
regulatory requirements. As of March 31, 2016, the Company had
developed 276 solar parks with an aggregate capacity of 259.1 MW
and owned and operated 133.1 MW of solar parks.
Safe-Harbor Statement
This press release contains forward-looking
statements. These statements constitute “forward-looking”
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates” and similar statements. Among other things, the
quotations from management in this press release and the Company's
operations and business outlook contain forward-looking statements.
Such statements involve certain risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements. These risks and uncertainties include,
but are not limited to the following: the reduction, modification
or elimination of government subsidies and economic incentives;
global and local risks related to economic, regulatory, social and
political uncertainties; resources we may need to familiarize
ourselves with the regulatory regimes, business practices,
governmental requirements and industry conditions as we enter into
new markets; global liquidity and the availability of additional
funding options; the delay between making significant upfront
investments in the Company's solar parks and receiving revenue;
expansion of the Company's business into the U.S. and China; risk
associated with the Company's limited operating history, especially
with large-scale IPP solar parks; risk associated with development
or acquisition of additional attractive IPP solar parks to grow the
Company's project portfolio; and competition. Further information
regarding these and other risks is included in Sky Solar's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form 20-F. Except as required by law, the Company
does not undertake any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
For investor and media inquiries, please contact:
Sky Solar:
IR@skysolarholding.com
SKYS Investor Relations:
ICR, LLC
Vera Tang
(646) 277-1215
Vera.tang@icrinc.com
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