A deal once considered the single largest transaction of solar power projects has fallen through.
China-based United Photovoltaics has announced that it has transferred a deal to acquire 930 MW of solar power projects from Hareon Solar to third parties, in exchange for regaining the initial deposit, interest, and expenses.
In 2014, United PV signed an agreement with Hareon Solar to acquire 930 MW worth of under-construction solar power projects, estimated at $1.4 billion. The capacity was spread across 17 projects located in various provinces of China, including Xinjiang, Hebei, Yunnan, Shanxi, Jiangsu, among other provinces.
The trouble for the deal started brewing when, according to United PV, Hareon Solar failed to meet a deadline to commission some projects.
In late December 2015, United PV claimed that Hareon Solar had failed to meet the conditions of the transaction. United PV sought a refund of $64.5 million from Hareon Solar as the latter had been able to commission only 30 MW capacity by late December. Hareon Solar, on its part, stated that it was working to commission more projects.
United PV, which has been on an acquisition spree for the last several months, secured RMB 10 billion (US$1.5 billion) to acquire more solar power projects in December 2015.
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