(By Balaseshan) China Hydroelectric Corp. (NYSE: CHC), an operator and developer of small hydropower projects, announced the sale of the 30-megawatt Yuheng hydroelectric power project for about $44.3 million.
The company entered into a share transfer agreement to sell the Yuheng hydroelectric power project.
The total consideration of 279.0 million Chinese Yuan Renminbi (about $44.3 million) includes the assumption of debt by the buyer.
The sale is expected to close in early 2013 and will result in a small profit to China Hydroelectric.
"The sale not only helps the company move a step closer to fixing its current liquidity situation, but also reaffirms the fundamental value of the company's assets," said Amit Gupta, chairman of the board of China Hydroelectric.
In addition to this transaction, the company continues to pursue other avenues to address its remaining liquidity needs in order to provide sufficient time for the new board to work with management on a comprehensive, long-term financing solution.
The company currently owns 26 operating hydropower stations in China with total installed capacity of 548 MW. It acquired 22 of those operating stations and constructed four. These hydroelectric power projects are located in four provinces: Zhejiang, Fujian, Yunnan and Sichuan.
CHC is trading up 9.30 percent at $1.88 on Thursday. The stock has been trading between $0.62 and $2.44 for the past 52 weeks.