China Power New Energy Development Co. Ltd. said August 14 it will buy power assets in China from its substantial shareholder, China Power International New Energy, including the 300-MW Fujian Shaxikou hydroelectric project.
The Hong Kong-listed renewable energy firm said it would buy CPI (Fujian) Power, which operates Fujian Shaxikou, for HK$1.23 billion (US$157.6 million). It said it also would buy two wind power firms from China Power International, a unit of government-owned State Power Corp. of China, for total expenditures of HK$1.63 billion (US$209 million).
China Power New Energy said the purchase would be settled by an issue of convertible note which is convertible into about 1.28 billion new shares, or 22.31 percent of the enlarged share capital, at HK$1.27 (16.3 US cents) each.
Construction of Fujian Shaxikou was completed in 1994 on the upper branch of Men Jiang River in Nan Ping District of China’s Fujian Province. It has four 75-MW turbine-generators.