HONG KONG (XFN-ASIA) – China Power New Energy Development Co Ltd (735.HK) said that wholly-owned unit China Power (New Energy) Holdings Ltd has entered into three separate agreements for the acquisition of power assets at a total cost of 1.63 bln hkd.
In the first transaction, China Power (New Energy) has agreed to acquire 100 pct of the entire issued share capital of Tianyuan Development Ltd for a total of 1.23 bln hkd.
In the second deal, China Power (New Energy) has agreed to acquire 90 pct of the entire issued share capital of Gansu China Power Jiuquan Wind Electric Power Co Ltd for a total of 250 mln hkd.
Finally, in the third transaction, China Power (New Energy) agreed to acquire 56 pct of the entire issued share capital of Tianhan Development Ltd for 150 mln hkd.
All the three power assets are to be acquired from China Power New Energy Development’s substantial shareholder, China Power International New Energy Development Ltd.
China Power New Energy said the total 1.63 bln hkd consideration for the assets that it is acquiring is to be paid by way of a convertible note issue to its substantial shareholder with an initial conversion price of 1.27 hkd per share.