Slaughter and May is advising China Huadian Corporation Ltd (Huadian) on the proposed privatisation, through its wholly-owned subsidiary, of Huadian Fuxin Energy Corporation Limited (Huadian Fuxin), a company incorporated in the PRC and listed on the Hong Kong Stock Exchange. The privatisation will be implemented by way of merger by absorption.
The privatisation proposal was announced on 1 June 2020. The amount of aggregate cancellation price required to cancel (i) the H Shares held by H Shareholders and (ii) the Domestic Shares held by the Domestic Shareholders under the privatisation proposal is approximately HK$6,425.56 million and RMB1,725.18 million respectively (excluding in respect of the shares held by Huadian and its wholly owned subsidiary).
The privatisation will be subject to a pre-condition relating to regulatory approvals and to conditions which include shareholder approvals.
Huadian Fuxin is primarily engaged in the development, management and operation of hydropower projects and coal-fired power plants in Fujian province and wind power and other clean energy projects throughout China.
Huadian is one of the five national power producers controlled and regulated by the State-owned Assets Supervision and Administration Commission of the State Council.
The offeror, Fujian Huadian Furui Energy Development Co., Ltd, is newly incorporated and wholly-owned by Huadian for the purpose of the merger and is mainly engaged in thermal power generation; hydropower generation; combined heat and power generation; wind power generation; solar power generation; other power production; power supply; power consulting services; investment in electricity, heat, gas and water production and supply; engineering supervision; environmental technology promotion services; environmental protection consulting; wholesale of coal and products (excluding hazardous chemicals).