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Case Study: Cross-Border Exit of Majority Stake in China Solar

At A Glance

Client Industry: Energy and Resources

Regions Served: Hubei, Singapore (cross-border coordination)

Client Overview: A multinational energy investment group engaged in power generation and renewable energy projects. The engagement involved its China‑based solar photovoltaic subsidiary operating an agriculture‑photovoltaic complementary power station supported by long-term power purchase agreements (PPAs) and government subsidies.

Client Brief

    • High financing costs arising from leasing arrangements, with annual interest expenses of approximately US$6 million
    • Inability to meet bank lending criteria and access lower-cost financing
    • Financial strain and shareholder disagreements resulting in pressure to divest
    • Deteriorating market conditions, policy changes and subsidy receivable impairments affecting business valuation
    • Cross‑border shareholder structure requiring coordination between foreign and Chinese shareholders

How We Helped

    • Identified potential buyers and facilitated initial transaction discussions
    • Acted as intermediary between foreign and Chinese shareholders
    • Conducted buyer due diligence to assess credibility and transaction feasibility
    • Commissioned an independent valuation reflecting prevailing market and policy conditions
    • Managed end‑to‑end transaction execution support, including escrow arrangements, share pledge releases and equity transfer procedures
    • Coordinated with government authorities and provided post-transaction monitoring and compliance support

Our Value

    • Successfully facilitated the transfer of an 80% foreign shareholding to the Chinese shareholder
    • Delivered an independent, market-aligned valuation reflecting changing market conditions and regulatory developments
    • Reduced transaction risk through structured M&A execution and stakeholder coordination
    • Ensured compliance with China regulatory requirements throughout and after the transaction process

 

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