According to EnergyTrend, Haitai New Energy issued an announcement on September 18, stating that its wholly owned subsidiary Tangshan Shengtai New Energy intends to jointly establish a partnership enterprise with Beijing Xicheng Energy Investment Co., Ltd. and Beijing Xicheng Win Win Technology Co., Ltd.
The transaction constitutes a related party transaction with a total subscribed capital contribution of RMB 125 million. The partnership will mainly invest in new energy projects including commercial and industrial distributed PV, utility scale PV, wind power, energy storage and zero carbon parks.
The partnership is tentatively named Beijing Xicheng Haitai New Energy Development Partnership (Limited Partnership), with an 8 year partnership term. Details of capital contribution are as follows:
- Beijing Xicheng Energy subscribes RMB 99 million, accounting for 79.2% of total capital;
- Tangshan Shengtai New Energy subscribes RMB 25.99 million, holding a 20.792% stake. The initial capital contribution is RMB 2.0792 million. Subsequent contributions will be funded by proceeds from selling existing grid connected power stations to the partnership. No additional capital raising by the listed company is expected;
- Beijing Xicheng Win Win Technology subscribes RMB 10,000, accounting for 0.008%.
Public information shows that the actual controller of Xicheng Energy is the State owned Assets Supervision and Administration Commission (SASAC) of Xicheng District, Beijing. Xicheng Win Win Technology is a newly established entity and has not yet commenced substantive business operations.
Per the announcement, the transaction does not require review by the shareholders’ general meeting. The formal partnership agreement has not been signed, and all arrangements shall be subject to the final executed documents.
Source：EnergyTrend
