Japan NK Investment, IDG-Accel China Capital offer to privatise Nasdaq-listed Sky Solar

Photo by Mariana Proença on Unsplash

Hong Kong-based power producer Sky Solar Holdings Ltd has received a preliminary proposal from a consortium seeking to privatise the Nasdaq-listed company in a bid that could value it at about $2.5 billion.

The consortium is composed of Japan NK Investment, venture capital firm IDG-Accel China Capital, Jolmo Solar Capital, CES Holding Ltd, Jing Kang, Bin Shi, Sino-Century HX Investments, and Kai Ding, said Sky Solar in a filing with the stock exchange on May 26.

The buyer group and their affiliates now hold an aggregate of 72 per cent shares in Sky Solar.

The investors offered to acquire all outstanding ordinary shares of Sky Solar for $0.3 in cash per share, or $6 in cash per American Depositary Share (ADS). If the proposed transaction is completed, Sky Solar would be delisted from the Nasdaq Capital Market.

In October 2019, Japan NK Investment purchased about 152.11 million ordinary shares of Sky Solar at a price of $0.25 per ordinary share, or $2 per ADS. The previous $38-million transaction gave the investor 36.3 per cent of the total shareholding in Sky Solar.

Sky Solar is a global independent power producer (IPP) that develops, owns and operates solar parks and generates revenue primarily by selling electricity. The company focuses on the downstream solar market and has developed projects in Asia, Europe, South America, and North America. It owned and operated 115.1 MW of solar parks as of December 31, 2019.

The company reported revenue of $49 million in 2019, down 32.65 per cent from nearly $65 million in 2018. Its gross profit stood at $27 million last year, representing a decrease of 25.93 per cent year-over-year, shows its latest financial results.

In September 2019, Sky Solar received a letter from Nasdaq setting forth a determination to delist its ADSs from the American capital market, as a result of the company’s inability to regain compliance with the minimum $1 bid price per share requirement under the board’s listing rule.

The stock exchange had provided Sky Solar with a period of 180 calendar days to regain compliance with the minimum bid price share requirement in March 2019, but the firm failed to do so in September 2019.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.