China Suntien to back wind projects through share issue

Aug 20, 2013 - China Suntien Green Energy (HKG:0956) said Monday it planned to launch a private offering of up to 476.7 million shares in Hong Kong, seeking to finance wind projects.

More specifically, the wind farms operator and natural gas retailer and distributor will allocate 70% of the funds to invest in wind park projects, while 20% will go to support its natural gas business in China. The remaining 10% will strengthen its working capital.

China Suntien said the 476.7 million shares to be issued on the Hong Kong Stock Exchange are equal to up to 35% of its total issued H shares on August 16 and up to 14.7% of its issued share capital. The firm said that the shares will not be sold at a discount greater than 20%, but did not give more pricing details.

The placement will be conducted among at least six and up to 10 investors. It is subject to shareholder and regulatory clearance, including from the China Securities Regulatory Commission and the Assets Supervision and Administration Commission.

On Monday, China Suntien reported a CNY-471.6-million (USD 77m/EUR 58m) net profit for the first half of 2013, down from CNY 489.9 million a year back. Revenues jumped to CNY 2.2 billion from CNY 1.8 billion, with CNY 737 million coming from the wind power segment.

(CNY 1 = USD 0.163/EUR 0.122)

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