China Power (02380.HK) announced that the company has just received a proposal for asset restructuring from State Power Investment Corporation, proposing to use the equity of several key hydropower subsidiaries of the company as consideration to subscribe for new shares to be distributed by Spic Yuanda Environmental-protection. Upon completion of the transaction proposed under the asset restructuring proposal, the group will become the direct controlling shareholder of Spic Yuanda Environmental-protection.
State Power Investment Corporation proposes to use subsidiaries under the group as consideration to subscribe for new shares to be distributed by Spic Yuanda Environmental-protection, while Spic Yuanda Environmental-protection will also raise funds concurrently, and will pay for the proposed sale of equity with newly issued A-shares and/or cash. State Power Investment Corporation intends that upon completion of the transaction proposed under the asset restructuring proposal, Spic Yuanda Environmental-protection will be established as a hydropower asset consolidation platform within China by State Power Investment Corporation, and through the group's equity in Spic Yuanda Environmental-protection, further consolidate the group's position as the flagship listed platform for State Power Investment Corporation's comprehensive clean energy.
The asset restructuring proposal is currently only in the preliminary planning stage and has not yet confirmed the consideration or any details. Uncertainties remain as to whether the asset restructuring proposal will proceed.
