NaiKun Wind Energy Group Inc. has announced that it has entered into an agreement to sell the NaiKun Offshore Wind Farm, located in the Hecate Strait off the coast of British Columbia, Canada to Northland Power Inc., a global developer, owner, and operator of sustainable infrastructure assets with expertise and capacity to advance early stage renewable energy projects to the next level of development.
Upon successful completion of the transaction, Northland will be responsible for all aspects of the project’s development. The transaction will occur by way of NaiKun selling Northland a 100 per cent interest in its wholly owned subsidiary, NaiKun Wind Development Inc.
Pursuant to the terms of the Agreement, NaiKun will receive the following:
- upon the project reaching its financial close, a payment based on the size of the developed project, which is expected to equal to the majority of NaiKun’s historical development costs on the project;
- upon the project becoming operational, future payments consisting of an annual cash distribution from the project after the operating costs and specified return on equity have been recovered by Northland; and
- subject to financial close of the project, an option to purchase up to a 10 per cent interest in the project.
The transaction is anticipated to close in mid-2020, subject to the satisfaction of certain customary conditions, including but not limited to the company obtaining the applicable regulatory approvals and approval of the transaction by way of a special resolution of the company’s shareholders.
Upon successful completion of the transaction, Northland will be solely responsible for all aspects of the project’s development, subject only to the option granted to NaiKun pursuant to the terms of the agreement.