Sky Solar Holdings, Ltd. Announces TK Interest Purchase and Sale Agreement and Withdrawal of Litigation by Solar Partnership ...
December 26 2018 - 8:29AM
Sky Solar Holdings, Ltd. (NASDAQ: SKYS) (“Sky Solar” or the
“Company”), a global developer, owner and operator of solar parks,
today announced that it and its wholly-owned subsidiaries Sky Solar
Japan Co., Ltd. (“SSJ”) and Sky International Enterprise Group Ltd.
have entered into a TK interest purchase and sale agreement (the
“Agreement”) with Solar Partnership Capital (“SPC”) and Conscious
Partners KK. The Agreement is related to the TK partnership
established on August 28, 2015, when SSJ entered into a silent
partnership agreement (the “TK Agreement”) with SPC to build and
operate approximately 107 MW of solar projects in Japan.
Under the terms of the Agreement, Sky Solar made a
payment of JPY 2 billion (US$18 million) to SPC upon the signing of
the Agreement, and an additional JPY13.4 billion (US$121 million)
will be paid on or before April 1, 2019, at which time SPC’s entire
interest under the TK Agreement will be transferred to Sky Solar or
any of its designated purchasers. The TK interest purchase
payment is guaranteed by Sky Solar and its subsidiaries. In
addition, on December 20, 2018, SPC withdrew the lawsuit it filed
against SSJ on June 25, 2018, which alleged significant differences
in the interpretation of certain terms of the silent partnership
between SSJ and SPC, and purported to seek certain damages.
Furthermore, Sky Solar has the option to raise
external financing by utilizing the projects under the TK
Agreement, or it can initiate a process to sell the projects under
the TK Agreement. The proceeds from either of these
transactions will be used to make the TK interest purchase
payment.
Dr. Hao Wu, Chairman of the Board of Directors of
Sky Solar, commented, “We believe the withdrawal of the litigation
by SPC and the TK Interest Purchase and Sale Agreement should
increase the confidence of Japanese financial institutions that
have been following the developments in this matter, and could open
up more project finance opportunities for SSJ’s projects in
Japan.”
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, and North
America. 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 June 30,
2018, the Company owned and operated 203.5 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; our ability to successfully implement our
on-going strategic review to unlock shareholder value; 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 in the U.S. and into 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@skysolarholdings.com
SKYS Investor Relations:
The Blueshirt Group
US or MandarinRalph Fong+1 (415)
489-2195ralph@blueshirtgroup.com
ChinaGary Dvorchak, CFA+86 (138)
1079-1480gary@blueshirtgroup.com
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