SEE: Analysts positive on Sunpower Group's M&S divestment
According to the valuation report issued by Nanjing Changcheng Land & Real Estate Assets Evaluation Consulting Co, the value of the 25-year exclusive right to supply steam to Sanli is RMB105 million as at Aug 31, 2020. Sunpower will pay RMB20 million as a deposit within five business days after the signing of the agreement, as well as the steam supply right contract. The balance consideration of RMB80 million after the boiler assets have been transferred to Hebei Changrun, and Sanli has completed one month of normal usage of the steam supplied by the former. In the agreement, Sanli shall not purchase steam from other third parties or product its own steam for 25 years, unless Hebei Changrun is unable to fulfil its required steam volume or quality. Sanli also guarantees that all of its existing textile and printing and dyeing related assets and production businesses in Gaoyang County will remain at their original operating sites.