Slaughter and May is advising China Power International Development Limited (China Power) on its proposed acquisition of majority interests in 23 clean energy project companies (the Target Companies) from China Power (New Energy) Holdings Limited and China Power International New Energy Holding Limited (each an indirect non-wholly owned subsidiary of State Power Investment Corporation (SPIC), an indirect controlling shareholder of China Power), for a total consideration of approximately RMB7.5 billion (US$1.1 billion).
The consideration will be settled partly by the issue of consideration shares under a special mandate and by cash.
The proposed acquisitions were announced on 4 July 2022 and constitute disclosable transactions and connected transactions of China Power under the Hong Kong Listing Rules.
Benita Yu, lead partner on the transaction said, “we are delighted to have advised long term client, China Power, on their significant acquisition of clean energy assets which will move them an important step closer to meeting their sustainability goals, and to support the renewable power generation targets outlined by PRC Government in the 14th Five-Year-Plan.”
China Power is a longstanding client of Slaughter and May which has been advising on its corporate finance transactions for over 16 years, including its acquisition of assets, secondary placing of shares, issue of bonds, recent adoption of share option scheme, listing rule compliance and other Hong Kong legal matters.
China Power group is principally engaged in the generation and sale of electricity in Mainland China, including investment, development, operation and management of hydropower, wind power, photovoltaic power and coal-fired power plants; and provision of energy storage, green power transportation, and integrated intelligent energy solution services. Its businesses are located in the major power grid regions of China. Its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited.