Project company

China Power prepares to delist clean energy project company from stock exchange – pv magazine international

State-owned electricity company China Power has confirmed that shareholders of its clean energy projects company will vote next month on whether or not to approve a plan to delist the company from the Hong Kong Stock Exchange. .

The shareholders of the clean energy development unit China Power Clean Energy Development Co Ltd were invited to vote on a plan for the company to become part of its unlisted parent company China Power New Energy Ltd, which is one of the entities overseen by China’s State-Owned Assets. Control and administration commission.

The program, first launched at the end of March, would involve shareholders of the project company being offered either HK $ 5.45 per share (US $ 0.70) or six shares of the parent company. As these shares would be held in an unlisted Chinese state-owned company, the board of directors of China Power Clean Energy expects all but two major shareholders to exercise the cash option if the transfer is approved. .

Cash bonus

The cash offer, although only a 0.9% premium on the last ‘practical’ day of trading of the shares, which closed at HK $ 5.40, is 94% above the average price. of the stock 60 days before that point, hinting that the company was hardly tight when it came to keeping details of the move under wraps before trading in the shares was suspended.

The shareholders who are expected to subscribe to the stock option are the parent company itself, which currently owns 26.42% of the Clean Energy Development business, and the state-owned China Three Gorges Corporation.

The takeover, which would effectively remove project development activity from the public scrutiny it faces on the Hong Kong Stock Exchange, is expected to cost China Power New Energy around HK $ 2.9 billion (HK $ 371 million). dollars).

China Power Clean Energy Development shareholders will vote on the proposal in Hong Kong on July 12.

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