Baker McKenzie represented Japanese conglomerate Marubeni Corporation ("Marubeni") in its acquisition of Chenya Energy Co Ltd ("Chenya"), marking Marubeni's first investment in a Taiwan solar project.
Marubeni will acquire 100% stake in Chenya as well as its power generation facilities. With the acquisition, Marubeni will have a portfolio of solar power generation assets throughout the island with a total capacity of approximately 270MW. The assets include one of the world's largest floating solar power plants.
According to Marubeni's press release, through the acquisition of Chenya and Chenya's solar power generation assets, Marubeni will gain expertise in the floating solar power business and continue to enhance its renewable energy development capabilities. Building on the gained expertise, Marubeni intends to enter other Asian markets as well.
In Taiwan, Marubeni has previously made investments in gas-fired combined power plant and gas-fired combined cycle power plant in Ever Power and Hsin Tao. With the addition of Chenya's solar power generation assets, Marubeni will hold a stake in more than 950MW of power generation assets within Taiwan. The acquisition also reflects Marubeni's efforts to raise the ratio of renewable energy in its power generation portfolio to 20% from the current 10% by 2023.
Principal Tiffany Huang, Partners Gwyneth Gu and Su-Fen Chen, co-led the team of ten attorneys including Evangeline Wang, Jun Chen, Shinn-Yih Ho, Sunny Lu, Yiting Lin, Tom Chou and Jady Kao on this transaction. The team advised Marubeni on Taiwan's regulatory regime for development of solar projects, performed due diligence on the acquired solar power generation assets and prepared the transaction documentation.
"This deal gave us the opportunity to leverage our strength and expertise in renewable energy as well as to promote the government's drive for construction of renewable energy plants. We are pleased to have the opportunity to work with our longstanding client in this remarkable deal," Tiffany commented.