JinkoSolar Enters Into Definitive Agreement for the Sale of Jinko Power Downstream Business in China
JinkoSolar Holding Co. Ltd. ,a global leader in the photovoltaic industry, recently announced that Wide Wealth Group Holding Limited, a 55%-owned indirect subsidiary of the Company, has entered into a Share Purchase Agreement (the “SPA”) with Shangrao Kangsheng Technology Co., Ltd. (the “Buyer”), a company incorporated with limited liability under the laws of the People’s Republic of China, formed by a buyer consortium led by Mr. Xiande Li, chairman of the board of directors of the Company (the “Board”).
Subject to satisfaction or waiver of the SPA’s terms and conditions, the Buyer will acquire all of the 55% equity interest indirectly held by JinkoSolar in Jiangxi JinkoSolar Engineering Co., Ltd., a developer and operator of solar power projects in the People’s Republic of China, for a total consideration of US$250 million in cash (the “Purchase Price”). Through this transaction, JinkoSolar will spin off all its downstream business of Jinko Power and get US$250 million in cash. The transaction is currently expected to close during the fourth quarter of 2016.
The Buyer intends to fund the Purchase Price with personal funds and debt financing.
The Board, acting upon unanimous recommendation of a committee of independent directors established by the Board (the “Special Committee”), unanimously approved the SPA and the transactions contemplated thereby. The Special Committee, which is composed solely of independent and disinterested directors, negotiated the terms of the SPA with the assistance of its financial and legal advisors.
In connection with the execution of the SPA and the performance of the transactions contemplated thereby, Duff & Phelps, LLC is serving as financial advisor to the Special Committee; Cleary Gottlieb Steen & Hamilton LLP is serving as U.S. legal advisor to the Special Committee; and Jun He Law Offices is serving as PRC legal advisor to the Special Committee. Credit Suisse (Hong Kong) Limited is serving as financial advisor to the Buyer; and Troutman Sanders LLP is serving as U.S. legal advisor to the Buyer.
