The acquisition will be done by a Singapore-based holding company of the Tanti group, Colossus Holdings.
The joint venture partners have signed a purchase agreement to acquire Honiton, which will build the portfolio. Honiton was established in 2005 to develop and operate wind power generation facilities within China, and to date, has 50 MW of installed capacity, and a further 100 MW in development.
In addition, Honiton has worked closely with the regional and state authorities in China, and has secured agreements to develop wind farms on five separate areas in China, representing a total of 2,244 square kilometres, on which it plans to develop its total capacity to reach 1,650 MW by 2012. Total installed wind energy capacity in China at the end of 2007 was 6,000 MW.
Tulsi R Tanti, director, Colossus Holdings, said: "This investment reinforces our commitment towards the renewable energy sector and belief in the exponential growth potential of wind energy in developing markets like China and India. Honiton, having developed an excellent pipeline of projects and backed by a strong management team, provides us with a good opportunity to further our interests in the wind energy sector along with Arcapita."
YES Bank was the sole advisor to Colossus Holdings on this transaction.
