(ADPnews) - Aug 24, 2010 - China Power New Energy Development Co Ltd (HKG:0735) said on Tuesday it had agreed to acquire 100% of the stock of China Power Dafeng Wind Power Co Ltd (CP Dafeng) for CNY 504 million (USD 74m/EUR 59m) in stock, seeking to boost its wind power capacity.
China Power will pay the amount in shares, priced at HKD 0.75 (USD 0.10/EUR 0.08), or 14.77% lower than its closing price on August 23. The shares to be issued represent 10.79% of the company's current share capital.
At the end of December 2009, the net asset value of CP Dafeng was CNY 291.9 million, while its total asset value amounted to CNY 1.53 billion. The acquisition will add 200.25 MW of wind power generation capacity to China Power, bringing the capacity of its wind projects to 350.25 MW. It will also improve the company's presence in the wind power sector and allow it to further benefit from China's policies and regulations that aim to encourage the development of renewable energy.
In addition to its wind power assets, China Power operates hydro-electric, waste-to-energy, natural gas and other power generation facilities with total installed capacity of nearly 1,060 MW.
(HKD 1 = USD 0.129/EUR 0.102, CNY 1 = USD 0.147/EUR 0.117)