China Power 4% parent company to implement hydropower asset injection

Earlier, executive director Li Xiaolin said the parent company hopes to inject 28 billion yuan in the first half of the year with 3.5 Million-kilowatt hydroelectric assets in China, with a notable 3.7% to 2.8 Hong Kong dollar earlier this morning, a 1.185 million-share deal and a news incentive to be implemented by asset injections.　　According to the latest announcement of China's electricity, it will spend 4.465 billion yuan on the acquisition of a total of 63% shares to the parent company for the development and supply of hydroelectric power in Hunan and Guizhou, thereby adding about 25% to about 11282 megawatts of installed capacity (excluding Guizhou power plants), greatly enhancing its competitiveness and growth potential.　　The announcement showed that 70% of the cost of the assets injected would be paid at HK $2.408 per share, with about 1.466 billion new shares to be issued, and another 30% to be paid in cash. China Power said the acquisition provided the company with a strategic opportunity to take the lead in the attractive Hunan hydropower market and China's fast-growing renewable energy market, significantly expanding existing and potential installed capacity, achieving a more balanced and profitable fuel mix and gaining hydro experience from the five group. Upon completion of the acquisition, the company will become the highest proportion of hydroelectric power producers listed in the Hong Kong stock exchange on the basis of current industry data.