New York City, December 8, 2011 — China Hydroelectric Corp., an owner, developer and operator of small hydroelectric power projects in China, entered into an equity purchase and sale agreement with Fujian Dachuang Group.
Fujian will sell its Yuanping hydroelectric power project, a 16 MW project located in Fujian province, for total consideration of $22 million, including the assumption of debt by the buyer.
The sale of the project is expected to close in early 2012 and will result in a small profit to the company.
John D. Kuhns, chairman and CEO of China Hydroelectric said, "While the key component of the company's business strategy has been to acquire, develop and construct hydroelectric power projects, we view our portfolio of operating assets as fluid and will make opportunistic sales of certain assets from time to time. We believe this transaction to sell one of our operating assets at a gain and to simultaneously reduce the company's debt levels is in the company's best interests."