Laurel Power 3.64 billion acquires 70% stake in Yantan

5th, Crown Power (600236) after the suspension of 1 months after the licence, and announced the "Guangxi Laurel Power Co., Ltd. to China Datang Corporation issued shares to buy assets and related transaction plan", the proposed use of Non-public offering shares and payment of cash in the way,　　The acquisition of the company's controlling shareholder Datang Group held a 70% stake in the company, the target price of about 3.64 billion yuan. The Laurel power stock was suspended on May 6 and the premium was 9.39 yuan.　　After the completion of the major assets reorganization, will be the Laurel power through the capital market financing, mergers and acquisitions to lay a solid foundation. Seven into the Yantan capital injection according to the reorganization plan, the crown power to buy the target assets for the company 70% stake and related shareholder equity. Up to the assessment base date, the target asset is estimated at about $3.64 billion, and the Crown Power uses a combination of non-public offerings and cash payments to pay for the transaction: the amount of the target asset purchased by the Non-public offering shares is about one-third of the target asset transfer price, to 8.31 yuan/　　Unit (including rights), the price of the issue of 148 million shares, the payment of cash to purchase the amount of the target assets of about two-thirds of the target asset transfer price, about 2.427 billion yuan. Yantan Company's existing four sets of 30.25-kilowatt mixed-flow hydro-turbine generator sets, the total installed capacity of 1.21 Million-kilowatt, the annual design average output of 5.66 billion kwh, the acquisition of Yantan company estimated about 5.2 billion yuan.　　According to the calculation, the unit installed investment cost of about 4298 yuan/kilowatt, greatly lower than the current market hydroelectric assets unit installed near million acquisition costs, and lower than the Yangtze River Power acquisition of the Three Gorges Hydropower unit cost level (about 8532 yuan/kw). Upon completion of the reorganization, the total installed capacity of the Crown power has been put into production will be increased to 3.993 million kw (of which hydropower is 3.223 million kw) by 2.783 million kw (including 2.013 million kw of hydropower) before the transaction, with an increase of 43.48% , the equity installed capacity is increased from 1.9238 million kw (including hydroelectric power 1.4618 million kw) to 2.7708 million kw (of which hydroelectric power is 2.3088 million kw) before the transaction, with an increase of 44.03%.　　This will help Laurel to improve its share of the power market in South China, especially in Guangxi, and play a competitive advantage in the market. Analysts said that hydropower resources are not replicable monopoly resources, hydropower stations after operating gross profit margin is usually more than 70%, and with the increase in the number of years of repayment, financial cost pressure to reduce, the net profit will appear rapid increase, with high long-term investment value.　　Yantan Company has been in operation for more than more than 10 years, the profitability of hydropower revenue is more stable (2008 Yantan company audited operating income and net profit of 810.72 million yuan and 294.01 million yuan respectively), the reorganization will play a good role in promoting the overall performance of the power. There's still room for improvement. The company said that the company's assets into the Laurel power, the laurel power of the main business development and financial situationAfter the reorganization is completed, the Laurel Power core competitiveness has been further improved, the future development prospects are more optimistic. Yantan Company's current electricity price is 0.1544 yuan/kwh, only for Guangxi hydroelectric benchmark electricity price 0.26 yuan/kwh 60% or so, electricity price future has certain promotion space. If the electricity price increases, Yantan company will have a significant contribution to the future profitability of the Laurel power.　　With the 2007 Longtan company's water storage and power generation, Longtan Reservoir for many years to adjust the effectiveness of more and more obvious, as the Longtan company's downstream power station, Yantan Company's production capacity will gradually improve and stabilize at a higher level.　　In addition, the company is planning to build two phase two 300,000-kilowatt hydropower unit expansion work, the project has been reported to the National Development and Reform Commission, the state Energy Administration for approval on April 28, 2009. It is understood that the overall operation of the Crown Power will also be changed this year. 2008, by the generation of the use of the number of hours dropped and high coal prices run, Heshan power plant loss of about 400 million yuan a year, almost swallowed up all the hydropower profits.　　With the fall in coal prices in 2009, the Heshan power plant's overall drag on the laurel will be greatly reduced. Company introduction, Dahua Hydropower station phase Two expansion project has started construction in July 2007, The total investment of the project is 680 million yuan, the installed capacity is 110,000-kilowatt, the annual generating capacity is estimated to be 153 million kwh, the planned production of electricity at the end of July 2009, according to the current construction progress, it is possible to put into production at the end of June, the project will raise electricity power generation and profitability.