Chinese-Canadian solar company Canadian Solar Inc. has entered into a definitive agreement to acquire North American solar developer Recurrent Energy LLC from its Japanese parent company Sharp Corp. for approximately $265 million. Once completed, the acquisition will increase Canadian Solar's total solar project pipeline by approximately 4.0 GW to 8.5 GW and its late-stage project pipeline by approximately 1.0 GW to 2.4 GW. Sharp previously said it expected to complete the sale by next spring. Located in California and Texas, Recurrent's 1.0 GW late-stage pipeline is one of the largest utility-scale project portfolios scheduled to be built prior to the US Federal Investment Tax Credit (ITC) for solar expires in 2016. According to Canadian Solar, the project pipeline represents an estimated revenue opportunity of at least $2.3 billion for Canadian Solar under a build and sell business model. Canadian Solar notes that the acquisition will also strengthen its position for creating its own yieldco in the coming quarters. Sharp acquired Recurrent Energy, which specializes in large-scale solar project development, in 2010 for $305 million in cash. The Japanese company revealed its plan to sell its North American subsidiary in September after hiring Bank of Nova Scotia to find a buyer. The sale will enable Sharp to raise capital to improve its financial situation. © PHOTON
Monty Bannerman
ArcStar Energy
+1-646-402-5076
www.arcstarenergy.com
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