US renewable energy producer GreenHunter Energy has exited its minority equity stake in Guangdong MingYang Wind Power Technology, a Chinese manufacturer of industrial scale wind turbines. The stake was picked up by Chinese growth venture firm DT Capital Partners for $9.1m.
DT Capital acquired 100 per cent of GreenHunter’s ownership interest, first acquired in late 2007.
GreenHunter CEO Gary C Evans cited improvements in the US wind turbine industry as a reason for the sale, meaning that a stake in a Chinese turbine producer was no longer the most efficient course for the company.
Evans said, “When we originally made this investment in late 2007, the primary purpose was to form a strategic alliance with a Chinese wind turbine manufacturer that would deliver new turbines to us for use at our company owned projects. We had previously negotiated favourable terms on deliverability timelines and purchase price. The wind turbine industry here in the US has substantially changed since that time with ample supply of product and substantially improved delivery schedules available today.
“Therefore, this strategic investment no longer made sense to our company and the cash received certainly improves our working capital position. GreenHunter Energy will report a capital gain on its investment in MingYang during the fourth quarter of this year,” he added.
GreenHunter recently signed a 20-year sales agreement with Californian utility Imperial Irrigation District for the output of its biomass plant in the state.
Copyright © 2009 AltAssets