Sunpower Group to acquire 90% interest in Chinese thermal power plant

ENVIRONMENTAL solutions company Sunpower Group on Wednesday said it is in the process of acquiring a 90 per cent equity interest in Changshu Suyuan Thermal Power Co Ltd, a thermal power plant in China.

The aggregate purchase consideration is estimated at approximately 320 million yuan (S$63.5 million) and will be adjusted based on the actual results of due diligence on the power plant.

Sunpower said the proposed acquisition is part of its strategy to build a Green Investments portfolio as a value creator and growth driver. The plant is the exclusive centralised steam supplier in its coverage area, and has recorded steady sales revenue growth over the past three years.

Sunpower intends to upgrade the power plant following the acquisition to enhance its overall operational efficiency.

The acquisition is expected to have a positive impact on the company's results for FY2019. Sunpower will provide updates on the progress of the acquisition in due course, and on the potential financial effects when the acquisition is completed.

Sunpower shares closed at S$0.505 on Wednesday before the announcement, down two Singapore cents or 3.81 per cent.