China Hydro Takeover

Chinese project developer China Hydroelectric has acquired all the hydro projects owned by Minrui in the Chinese province of Yunnan, totalling 55.5MW in capacity, for RMB404.9m ($59.3m).

The NYSE-listed company paid RMB116.5m ($17.1m) in cash upfront. It said that the acquisition provides for the addition of three projects including the 12.6MW Aluhe project, the 18.9MW Latudi project and 24MW Zilenghe project.

The company previously announced the execution of the definitive agreement for this acquisition in May.

Approval for a RMB90m ($13.2m) loan from the Bank of China’s Fujian Branch, which will assist in financing the acquisition, has been granted for the acquisition of the Latudi 18.9MW project, representing 64 per cent of the total project value.

The company said it is also seeking to finalise lending arrangements for the other two projects, Aluhe and Zilenghe.

The acquisition of the 44MW Xiaopengzu project, also in Yunnan province, is waiting to be finalised, along with the acquisition of the Taiyu projects for which the company has entered into an agreement and made down payments.

The company said it expects to enter into definitive agreements to acquire and finance these projects in the near-term.