Samsung C&T Corp. has recently sold off its solar power plants in Bulgaria, continuing its move to secure cash by selling its assets at home and abroad.
Investment banking (IB) industry sources said on Jan. 17 that Samsung C&T, the de facto holding company of Samsung Group, recently sold seven solar power plants and management facilities in Bulgaria to a joint venture established by German asset manager KGAL and Czechia-based Micronix Group. The deal is estimated at more than 100 billion won (US$88.97 million). An official from Samsung C&T said, “We are focusing our solar power assets on the North America region. We decided to sell the facilities in Bulgaria to streamline the business.”
The solar power plants in Bulgaria generate a total of 43 megawatt-peak (MWp) of power, accounting for 4.18 percent of the total solar power generated in the country. Samsung C&T is working on the new renewable energy development business through its trading division. The company holds seven subsidiaries in Bulgaria, including Ecosolar OOD, for its new renewable energy development business, according to its quarterly report. The combined capital of the seven companies came to 21 billion won (US$18.68 million) as of the third quarter last year.
Meanwhile, Samsung C&T has recently sold its assets one after another. The company’s cashable assets amounted to 3 trillion won (US$2.67 billion) as of the end of 2017. However, the figure is expected to reach 4 trillion won to 5 trillion won now due to capital gains from the asset sales last year.
An industry watcher said, “Samsung C&T will play a key role in Samsung Group’s governance reform and business restructuring in the future. It is expected to continue portfolio readjustment and asset sales this year.”