Huaneng New Energy (00958.HK) will be delisted from the Hong Kong Stock Exchange at 4: 00 p.m. on February 24, 2020, and trading in shares will be suspended from 9: 00 a.m. on February 20.

Huaneng Group, one of the five major central power enterprises, said on its website that its Hong Kong listed company, Huaneng New Energy (00958.HK), is about to be privatized, and the acceptance rate of the privatization deal is more than 90%. This transaction is the first successful comprehensive offer for privatization (with an acceptance rate of more than 90%) since the New deal of the Hong Kong Securities and Futures Commission in 2018, the largest privatization transaction in the history of a Hong Kong listed energy industry company (in terms of transaction enterprise value), the largest central enterprise / state-owned enterprise privatization transaction in the history of Hong Kong listed companies (in terms of transaction enterprise value), The largest M & A deal in Asia's renewable energy industry in nearly three years (by transaction enterprise value).

Privatization means that the controlling shareholders delist a listed company by acquiring the shares circulated in the market, and the listed company is no longer a public company, but a "private" company. The privatization of Huaneng New Energy will contribute to the business integration of China Huaneng and Huaneng New Energy, and help China Huaneng to be more flexible and efficient in supporting the future business development of Huaneng New Energy. And withstand any potential uncertainty from the perspective of market competition, macro environment and industry regulation.

Why privatize?

Huaneng New Energy, formerly known as Huaneng New Energy Industry Holdings Co., Ltd., founded in November 2002, on June 10, 2011.HKExListed on the main board, raising HK $6.617 billion. Huaneng New Energy, as the second largest wind power operator in China, is mainly engaged in wind power, and its installed capacity is second only toChina Longyuan Power Group Corporation(00916.HK).

Huaneng New Energy said that the main reason for the privatization of the company is the need for a larger capital operation platform for the better development of new energy power generation business, and privatization will represent a reference way for the reform of state-owned enterprises.

Huaneng Group said that the privatization of Huaneng New Energy will contribute to the business integration of Huaneng Group and Huaneng New Energy, help Huaneng Group to be more flexible and efficient in supporting the future business development of Huaneng New Energy, and withstand any potential uncertainty from the perspective of market competition, macro environment and industry regulation. In addition, privatization helps to solve the problem of inter-industry competition among the companies of the group.