Privatization possibility for Chinese hydropower project developer

Investment firm NewQuest Capital Partners has agreed to acquire the China Hydroelectric Corporation in a US$190 million deal that could take the company private.

The Hong Kong-based firm first expressed interest in the New York Stock Exchange-listed China Hydroelectric Corporation (NYSE: CHC) this past September.

CHC said NewQuest will pay $1.17 per ordinary share or $3.51 per American Depositary Share (ADS), which is 18.2% higher than when it made its preliminary non-binding proposal.

NewQuest currently owns 49.8% of CHC’s ordinary shares, with options and warrants to acquire additional ordinary shares that could increase its stake to 56.8%.

China Hydroelectric’s board has recommended that shareholders vote for the privatization deal, which would close during the first half of this year if approved.

China Hydroelectric was founded in 2006 and now has offices in Beijing and New York City. The company owns 25 hydropower projects in China that have a cumulative installed capacity of 517.8 MW. reported in April that CHC had sold its 30-MW Yuheng project to an undisclosed buyer. The company also recently announced changes to its executive team.


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