March 18 (Renewables Now) - Chinese toll highways and roads builder Shenzhen Expressway Co Ltd (HKG:0548) plans to take control of Nanjing Wind Power Technology Co Ltd to grow its own environmental protection business, it was announced on Friday.
Nanjing Wind Power is active in the research and development (R&D), manufacture, installation and maintenance of wind turbines, as well as in the investment in and operation of wind farms. Its acquisition will expand Shenzhen Expressway's revenue source and profit base, and, at the same time, help the group to rapidly enter the wind power industry, it said in a bourse statement.
Under the terms of the newly-signed deal, the group’s fully-owned unit Shenzhen Expressway Environmental Co Ltd will buy a 30% stake in Nanjing Wind Power for CNY 210 million (USD 31.3m/EUR 27.6m). After the closing of this transaction, Shenzhen Expressway Environmental will invest a further CNY 300 million in the wind power business as part of a capital hike that will increase its shareholding to 51%.
(CNY 1.0 = USD 0.149/EUR 0.131)