Sky Solar Advises Shareholders to Stop, Look and Listen in Response to Offeror Group’s Offer

Rhea-AI Summary

Sky Solar Holdings (NASDAQ: SKYS) announced that its Special Committee recommends shareholders consider an unsolicited tender offer made by the Offeror Group on July 6, 2020. The Special Committee is set to review the Offer and will provide a recommendation within 10 business days. The announcement follows the withdrawal of a previous proposal from certain investors. Sky Solar, an independent power producer, owns and operates solar parks globally, with 115.1 MW of capacity as of December 31, 2019.

Positive

• Special Committee will review the unsolicited tender offer and provide a recommendation to shareholders within 10 business days.
• Sky Solar holds 115.1 MW of operational solar parks, indicating a strong asset base.

Negative

• Withdrawal of the previous non-binding proposal may indicate a lack of confidence from investors.
• The tender offer is unsolicited, raising concerns about the company's attractiveness to potential acquirers.

HONG KONG, July 09, 2020 (GLOBE NEWSWIRE) -- The special committee (the “Special Committee”) of the board of directors of Sky Solar Holdings, Ltd. (NASDAQ: SKYS) ("Sky Solar" or the "Company") today recommended that the Company’s shareholders stop, look and listen at this time in response to the announcement by Square Acquisition Co. (the “Purchaser”), Square Limited, Japan NK Investment K.K., IDG-Accel China Capital L.P., IDG-Accel China Capital Investors L.P., Jolmo Solar Capital Ltd., CES Holding Ltd., Jing Kang, Bin Shi, Sino-Century HX Investments Limited, Kai Ding, TCL Transportation Holdings Limited, Esteem Venture Investment Limited, Mamaya Investments Ltd, Xanadu Investment Ltd. (H.K.), Abdullateef A. AL-Tammar, Development Holding Company Ltd., and Bjoern Ludvig Ulfsson Nilsson (collectively, the “Offeror Group”) that the Purchaser has made an unsolicited conditional tender offer (the “Offer”) on July 6, 2020 to acquire all of the issued and outstanding ordinary shares, par value $0.0001 per share (the “Ordinary Shares”), including all Ordinary Shares represented by American depositary shares (the “ADSs,” each representing twenty Ordinary Shares), of the Company and not owned by the Offeror Group (as well as 600,000 ADSs owned by Kai Ding and 146,499 ADSs owned by TCL, which shall be tendered in the Offer).

As required by the US regulations, the Special Committee will review and consider the Offer, and within 10 business days from the date of the Offer, will advise the Company’s shareholders whether it recommends shareholders accept or reject the Offer; whether it is expresses no opinions and remains neutral reading the Offer, or if it is unable to take a position regarding the Offer, as well as its reasons for the position that it takes at that time.

On July 6, 2020, Sky Solar received a notice that Japan NK Investment K.K., IDG Accel China Capital L.P., IDG-Accel China Capital Investors L.P., Jolmo Solar Capital Ltd., CES Holding Ltd., Jing Kang, Bin Shi, Sino-Century HX Investments Limited and Kai Ding decided to withdraw the non-binding proposal set forth in its letter to the Company’s board of directors dated as of May 25, 2020, with immediate effect.

About Sky Solar Holdings, Ltd.

Sky Solar is a global independent power producer (“IPP”) that develops, owns, and operates solar parks and generates revenue primarily by selling electricity. Since its inception, Sky Solar has focused on the downstream solar market and has developed projects in Asia, Europe, South America and North America. The Company’s broad geographic reach and established presence across key solar markets are significant differentiators that provide global opportunities and mitigate country-specific risks. Sky Solar aims to establish operations in select geographies with highly attractive solar radiation, regulatory environments, power pricing, land availability, financial access and overall power market trends. As a result of its focus on the downstream photovoltaic segment, Sky Solar is technology agnostic and is able to customize its solar parks based on local environmental and regulatory requirements. As of December 31, 2019, the Company owned and operated 115.1 MW of solar parks.

Safe-Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the quotations from management in this press release and the Company’s operations and business outlook contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: the reduction, modification or elimination of government subsidies and economic incentives; global and local risks related to economic, regulatory, social and political uncertainties; resources the Company may need to familiarize itself with the regulatory regimes, business practices, governmental requirements and industry conditions as the Company enters into new markets; the Company’s ability to successfully implement its on-going strategic review to unlock shareholder value; global liquidity and the availability of additional funding options; the delay between making significant upfront investments in the Company’s solar parks and receiving revenue; expansion of the Company’s business in the United States and Japan; resolution of disputes; risk associated with the Company’s limited operating history, especially with large-scale IPP solar parks; risk associated with development or acquisition of additional attractive IPP solar parks to grow the Company’s project portfolio; and competition. Further information regarding these and other risks is included in Sky Solar’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

Sky Solar:
IR@skysolarholdings.com

Sky Solar Investor Relations:

The Blueshirt Group

US or Mandarin
Ralph Fong
+1 (415) 489-2195
ralph@blueshirtgroup.com

China
Gary Dvorchak, CFA
+86 (138) 1079-1480
gary@blueshirtgroup.com

FAQ

What is the recent tender offer for Sky Solar Holdings (SKYS)?

On July 6, 2020, Sky Solar received an unsolicited conditional tender offer from an Offeror Group to acquire all issued and outstanding ordinary shares.

What will the Special Committee do regarding the tender offer for SKYS?

The Special Committee will evaluate the tender offer and inform shareholders whether to accept or reject it within 10 business days.

What happened to the previous proposal made to Sky Solar (SKYS)?

The Offeror Group withdrew its non-binding proposal made on May 25, 2020, effective immediately on July 6, 2020.

What is the operational capacity of Sky Solar Holdings (SKYS)?

As of December 31, 2019, Sky Solar had an operational capacity of 115.1 MW from its solar parks.