SKYS Announces TK Interest Purchase and Sale Agreement and Withdrawal of Litigation by SPC

Sky Solar Holdings, Ltd. (SKYS) a global developer, owner and operator of solar parks, today announced that it and its wholly-owned subsidiaries Sky Solar Japan Co., Ltd. (“SSJ”) and Sky International Enterprise Group Ltd. have entered into a TK interest purchase and sale agreement (the “Agreement”) with Solar Partnership Capital (“SPC”) and Conscious Partners KK.  The Agreement is related to the TK partnership established on August 28, 2015, when SSJ entered into a silent partnership agreement (the “TK Agreement”) with SPC to build and operate approximately 107 MW of solar projects in Japan.

Under the terms of the Agreement, Sky Solar made a payment of JPY 2 billion (US$18 million) to SPC upon the signing of the Agreement, and an additional JPY13.4 billion (US$121 million) will be paid on or before April 1, 2019, at which time SPC’s entire interest under the TK Agreement will be transferred to Sky Solar or any of its designated purchasers.  The TK interest purchase payment is guaranteed by Sky Solar and its subsidiaries.  In addition, on December 20, 2018, SPC withdrew the lawsuit it filed against SSJ on June 25, 2018, which alleged significant differences in the interpretation of certain terms of the silent partnership between SSJ and SPC, and purported to seek certain damages.

Furthermore, Sky Solar has the option to raise external financing by utilizing the projects under the TK Agreement, or it can initiate a process to sell the projects under the TK Agreement.  The proceeds from either of these transactions will be used to make the TK interest purchase payment.

Dr. Hao Wu, Chairman of the Board of Directors of Sky Solar, commented, “We believe the withdrawal of the litigation by SPC and the TK Interest Purchase and Sale Agreement should increase the confidence of Japanese financial institutions that have been following the developments in this matter, and could open up more project finance opportunities for SSJ’s projects in Japan.”

Source: Sky Solar
Date: Dec 26, 2018