According to EnergyTrend, on May 13, Ningbo Boway Alloy Material Co., Ltd. (Boway Alloy) issued an announcement stating that its wholly owned subsidiaries plan to sell battery assets of its U.S. solar photovoltaic business.
The announcement shows that Boway Alloy’s wholly owned subsidiaries, BOVIET SOLAR CELL TECHNOLOGY (NORTH CAROLINA) LLC (the Battery Company) and BOVIET USA PROPERTY LLC (the Property Company), intend to sell the battery assets of the U.S. solar photovoltaic business to INOX SOLARAMERICAS, LLC.
The assets to be sold herein collectively refer to all equipment related to the solar cell project owned by the Battery Company, as well as workshops and associated facilities owned by the Property Company, as stipulated in the agreement.
Combined with the previously disclosed sale of module assets by Boway Alloy, the total consideration for the sale of battery assets and the prior sale of module assets is estimated at approximately USD 724 million.
Regarding the calculation method of the consideration for the battery asset transaction, the announcement specifies that the total acquisition consideration equals the benchmark acquisition price plus final closing inventory and labor costs, plus performance payment (if applicable), less final closing liabilities. Among them, the benchmark acquisition price is USD 413 million, and the benchmark performance payment is USD 57 million.
Notably, the battery assets proposed for sale represent capacity under construction. With a total planned investment of USD 370 million, the project will be delivered to the buyer upon completion.
As of the date of the announcement, all parties have reached an agreement on the transaction plan and signed an Asset Purchase Agreement. The buyer has paid an initial battery deposit of USD 23.5 million to the seller.
As previously disclosed, Boway Alloy has signed an agreement with the same buyer for the sale of module assets, planning to sell 100% equity interest in its wholly controlled subsidiary Boviet Solar Technology (North Carolina) LLC (Boviet North Carolina) to the buyer. The maximum consideration for this transaction shall not exceed the sum of USD 254 million and closing cash.
Accordingly, the total estimated consideration for the sale of 100% equity interest in Boviet North Carolina and the battery assets is approximately USD 724 million (benchmark acquisition price plus performance payment). The final transaction consideration shall be subject to actual conditions upon completion of asset delivery.
Source：EnergyTrend