China Power International Development Limited on its USD3.8 Billion-Asset Restructuring involving the Acquisition of Shanghai-listed SPIC Yuanda Environmental Protection Co., Ltd.

Slaughter and May is advising China Power International Development Limited (“China Power”) in a group asset restructuring which involves its acquisition of Shanghai-listed SPIC Yuanda Environmental-Protection Co., Ltd. (“Yuanda Environmental”) and the transfer of interests in its subsidiaries, Wu Ling Power Corporation (“Wu Ling Power”) and SPIC Guangxi Changzhou Hydropower Development Co., Ltd. (“Changzhou Hydropower”) to Yuanda Environmental. The total consideration in respect of the transfers is RMB27.7 billion (USD3.8 billion), to be settled by Yuanda Environmental by way of issue of shares in Yuanda Environmental and cash. Upon completion of the asset restructuring, the China Power group will hold 55.13% equity interest in Yuanda Environmental, which will be consolidated in the financial statements of the China Power group, and Wu Ling Power and Changzhou Hydropower will continue to be subsidiaries of China Power through its holding in Yuanda Environmental.

After the asset restructuring, China Power will complete the integration of its hydropower assets into a specialised platform and become the controlling shareholder of Yuanda Environmental, enabling China Power to fully utilise the synergies between environmental protection business and clean thermal power business, laying a strong foundation for China Power’s strategic goal of becoming a comprehensive clean energy flagship platform for State Power Investment Company Limited (“SPIC”). China Power’s acquisition of a controlling stake in Yuanda Environmental will also establish a favourable corporate structure and allow China Power to effectively make use of the linkage hub function of the capital markets of mainland China and Hong Kong to broaden financing channels and strengthen capital operation capabilities. 

Slaughter and May also advised China Power in the pre-restructuring transactions announced in January 2025 involving the acquisitions of 23 new energy companies by Wu Ling Power from China Power’s connected persons for RMB1.23 billion (USD170 million) and formation of joint ventures and other acquisition and intragroup restructuring of Wu Ling Power and Changzhou Hydropower. 

China Power is a long-standing client of Slaughter and May, which has been advising on its corporate finance transactions, including its acquisitions of Wu Ling Power in 2009 and of clean energy assets in 2022 and 2023 and equity and debt capital market transactions, as well as compliance matters.

China Power is a core subsidiary of SPIC which, 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 principally engaged in 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. 

Benita Yu and Justin Chan, lead partners for the transaction, comment: “It is an honour to be continuing to assist China Power in its strategic development over the years, including in particular seeing its establishment of a platform through Yuanda Environmental, a Shanghai-listed company, as well as the growth of Wu Ling Power which we helped the client acquire in 2009 and which, through this transaction, is to become part of Yuanda Environmental.”