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China Power to buy clean energy assets from parent for $750 mln

China Power to buy clean energy assets from parent for $750 mln

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The parent will inject natural gas, hydro, solar and wind power assets into the company, expanding its foothold in five provinces in mainland China — Guangdong, Guangxi, Anhui, Hubei and Shandong, the Hong Kong-listed firm said in a filing late on Monday.

HONG KONG: China Power International Development Ltd said it would buy clean energy assets from its state-owned parent State Power Investment Corporation (SPIC) for 4.97 billion yuan ($750.4 million), accelerating a push away from coal-fired generation.

The parent will inject natural gas, hydro, solar and wind power assets into the company, expanding its foothold in five provinces in mainland China — Guangdong, Guangxi, Anhui, Hubei and Shandong, the Hong Kong-listed firm said in a filing late on Monday.

The acquisitions will boost China Power’s total attributable installed capacity by 11.8 percent and increase the share of clean energy to about one-third of its capacity, the company said. Its power plants are mostly coal-fired.

China Power said it would fund the acquisitions partly through a sale of HK$2 billion ($256.25 million) in new shares in a one-for-three offer to existing shareholders. The remainder will be financed by internal resources.

($1 = 6.6235 Chinese yuan renminbi) ($1 = 7.8049 Hong Kong dollars)

Source: Reuters
Anand Gupta Editor - EQ Int'l Media Network

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