Slaughter and May is advising China Power International Development Limited (China Power) on its proposed acquisition of majority interests in five clean energy project companies (the Target Companies) from State Power Investment Corporation Limited (SPIC), State Power Investment Corporation Limited Guangdong Power Co., Ltd. (SPIC Guangdong) and China Power Complete Equipment Co., Ltd (CPCEC) (wholly-owned subsidiaries of SPIC, an indirect controlling shareholder of China Power), for a total consideration in cash of approximately RMB10.8 billion (US$1.5 billion).
The proposed acquisitions were announced on 26 July 2023 and constitute major transactions and connected transactions of China Power under the Hong Kong Listing Rules, subject to shareholders’ approval.
The China Power group is principally engaged in the generation and sales 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.
SPIC is an investment holding company principally engaged in businesses that cover various sectors, including power, coal, aluminium, logistics, finance, environmental protection and high-tech industries in China and abroad. SPIC, together with its subsidiaries, is an integrated energy group which simultaneously owns thermal power, hydropower, nuclear power and renewable energy resources in China.
China Power is a longstanding client of Slaughter and May which also advised on its USD1.1 billion acquisition of clean energy assets in 2022 and various landmark corporate finance and capital market transactions over the years.
Benita Yu, lead partner for the deal, comments: “We are excited and honoured to be able to support China Power in another significant transaction as part of its clean energy strategy, and look forward to witnessing its continuous impressive growth.”