Renewable Energy Asia

Renewable Energy Asia announced that it has signed a MOU with Jiangsu Maritime Engineering Services Co. to acquire its wholly-owned subsidiary, Nantong Huaishuo Investment Co, which in turn has the right to subscribe up to 49% of the total share capital in Datang Baotou Asia Electricity Co. The purpose of the MOU is to allow the REA to conduct the necessary due diligence work in assessing the feasibility of its potential investment in Nantong Huaishuo Investment Co., Ltd and henceforth, determine the price for the Acquisition. Datang Baotou currently has wind farm development projects in Huaishuo town within the city of Baotou. To date, Datang Baotou has received regulatory approvals for the development of a wind farm with a capacity of 49.5 MW and a total projected investment value of about RMB490m. In the near term, REA Group expects to derive its operating income from EPC projects while long-term recurring income should come from its wind farm development and electricity generation business.