(SeeNews) - Dec 12, 2011 - China Three Gorges Corp on Saturday has agreed to acquire a 29.05% stake in China Power New Energy Development (HKG:0735) for some HKD 2.1 billion (USD 270m/EUR 204m), the target company said in a statement.
China Three Gorges, the operator the biggest hydropower dam around the globe, will become the largest shareholder in China Power New Energy.
Under the terms of the deal, China Power New Energy will issue to China Three Gorges 3.2 billion of stock at a price of HKD 0.65. The price represents a 91.18% premium on the average closing price of the company's shares for the five trading days prior to the deal.
China Power New Energy, which operates wind, waste-to-energy, natural gas and hydropower generation facilities, said it would use the proceeds to back its power projects.
Just a few days ago, the company and hydropower producer China Yangtze Power (SHA:600900) terminated a HKD-2.1-billion deal, under which Yangtze Power was to acquire a 26.2% interest in China Power New Energy.
(HKD 1 = USD 0.129/EUR 0.097)