Shenzhen Energy acquires stake in sister company
Shenzhen Energy Group Co Ltd, the first listed power company in Shenzhen, announced that it plans to acquire 59.19 million shares, or 10.8%, of its sister company Shenzhen Nanshan Power Co from its parent group, said Shenzhen Energy in a statement filed with the Shenzhen Stock Exchange.
No financial details of the planned acquisition were revealed yet. Shenzhen Nanshan’s shares have been suspended from trading till Sep. 2, and by then a final purchase deal is expected to be signed.
The move is part of Shenzhen Energy Group Corp’s (the parent company) plan of injecting a majority of its quality assets in to Shenzhen Energy before a planned group listing.
Shenzhen Energy Group has won the regulatory approval for the group listing last September. Its listed unit Shenzhen Energy said in a statement later that it plans to acquire most of the parent’s assets, including shareholdings in Zhuhai Hongwan Power Co and Shenzhen Nanshan Power Co, which were valued at RMB 7.624 billion.
Shenzhen Energy sold 1 billion shares via a private placement to its parent group and Huaneng Power International Inc to fund the acquisition.
As at the end of 2007, Shenzhen State-owned Assets and Supervision Administration Commission (SASAC) and Huaneng Power International held 75% and 25% shares respectively in Shenzhen Energy.
Tags: Energy, Shenzhen