Canadian Solar Inc. (NASDAQ: CSIQ) and SkyPower Global have announced the close of a purchase transaction, under which Canadian Solar has acquired a majority interest in 16 solar projects representing approximately 190 to 200 MW DC from SkyPower.
The companies also formally launched their new international 50:50 joint venture agreement, called CSI SkyPower.
Each of the 16 solar projects was awarded a 20-year power purchase contract by the Ontario Power Authority. Fifteen of the contracts are issued under Ontario's Feed-In-Tariff Program, and one of the contracts is issued under Ontario's Renewable Energy Standard Offer Program.
The projects are in the advanced permitting stage and are expected to commence construction in 2013 and be fully operational in 2014, with the capacity to generate over $785 million in revenue. The aggregate transaction price is approximately $181 million payable in accordance with certain milestones. A partial payment of $69 million for the transaction has been made.
As part of the transaction consideration, a five-year warrant was issued to SkyPower for 9.90 percent of Canadian Solar's outstanding shares, with an exercise price of$5.00 per share.
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