(SeeNews) - Dec 15, 2011 - China Power New Energy Development (HKG:0735) said today it had agreed to acquire all of the stock of Meixi Hydropower Co for CNY 348 million (USD 54.6m/EUR 42m) from Ouneng Power Group.
The target company owns the 129-MW Chongqing City Meixi River Du Kou Ba hydroelectric project, which is currently under construction. The transaction, to be financed with internal resources, is seen to strengthen China Power New Energy's hydropower portfolio.
As of October 2011, Meixi Hydropower owes CNY 133.2 million to Ouneng Power in the form of a zero-interest shareholders loan. The debt will continue to be borne by the company, which is to repay the amount within five working days from the date when China Power New Energy has taken over its management.
At the end of June 2011, China Power New Energy Development operated 1,638.55 MW of wind, hydropower, waste-to-energy, natural gas, solar power and other power generation assets.
(CNY 1 = USD 0.157/EUR 0.121)