It is reported that Guodian Nanjing Automation will spend CNY 100 million to acquire a 67% stake in Xinjiang Huaran New Energy.
Huaran New Energy is constructing the first phase of Huaran wind power plant in Dabancheng, Xinjiang province which will be operational by the end of 2011 with capacity of 49.5 megawatt. The Huaran wind power plant has planned capacity of 100 megawatt with areas of 1,000 square kilometres and annual wind energy reserves of 25 terawatt hours.
Huaran New Energy was appraised at CNY 151 million. Individuals Chen Jinghua and Yin Peida respectively hold 99 and one-percent stakes in Huaran New Energy. Guodian Automation will acquire a 66% stake in Huaran New Energy from Chen Jinghua and 1% stake from Yin Peida and it will become the share controller of Huaran New Energy.
Guodian Automation will buy the ownership and operating rights of the Huaran wind power plant via transfer operate-transfer over the course of 12 years. It will transfer its 67% stake in Huaran New Energy to Chen Jinghua when the operating right of the Huaran wind power plant expire.
Guodian Automation expressed that it acquire a 67% stake in Huaran New Energy in order to enter into the wind power sub-sector. Guodian Automation predicts that Huaran New Energy will contribute CNY 61.22 million revenue to it in 2013.