Huananeg Renewables to buy solar firm for USD 60m

Dec 23, 2013 - Chinese wind and solar park operator Huaneng Renewables Corp Ltd (HKG:0958) said Friday it had struck a deal to acquire Huaneng Ge’ermu Photovoltaic Power Generation Co for CNY 356.1 million (USD 59m/EUR 43m).

The deal is in line with the buyer's efforts to expand its operations.

Huaneng Renewables will purchase 100% of the target firm’s shares from power investment firm Huaneng International Power Development Corp, or HIPDC, in an all-cash transaction. HIPDC is a 57%-owned unit of Huaneng Group, which holds about 61.3% in Huaneng Renewables.

Huaneng Ge’ermu is involved in the solar power generation in China’s Qinghai province. For the six months through June 2013, it generated CNY 20.8 million in net profit and had CNY 179.4 million in net assets.

In addition, Huaneng Renewables has also agreed to buy 8% of the equity interest in wind power producer Huaneng Shantou Nanao Wind Power Generation Co from Huaneng Group for CNY 8.2 million. The target entity’s net profit in January-June stood at CNY 2.9 million, while its net assets amounted to CNY 55.8 million.

The completion of the two deals depends on regulatory and government clearance, approval by Huaneng Group.

(CNY 1.0 = USD 0.165/EUR 0.120)

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