China Hydroelectric Corporation Announces the Sale of 16 MW Yuanping Hydroelectric Power Project for $22M
China Hydroelectric Corporation (NYSE: CHC) today announced the Company has entered into an Equity Purchase and Sale Agreement with Fujian Dachuang Group to sell its Yuanping hydroelectric power project, a 16 megawatt project located in Fujian province, for total consideration of $22.0 million, including the assumption of debt by the buyer. The sale of the project is expected to close in early 2012 and will result in a small profit to the Company.
Mr. John D. Kuhns, Chairman and Chief Executive Officer of China Hydroelectric, stated, "While the key component of the Company's business strategy has been to acquire, develop and construct hydroelectric power projects, we view our portfolio of operating assets as fluid and will make opportunistic sales of certain assets from time to time. We believe this transaction to sell one of our operating assets at a gain and to simultaneously reduce the Company's debt levels is in the Company's best interests."
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