Huaneng Power to acquire equity interests in Hainan Nuclear
On December 1, 2010, the Company entered into a Time Shipping Interest Transfer Agreement with HEC, pursuant to which the Company proposed to acquire an equity interest representing 50% of the registered capital of Time Shipping from HEC for a consideration of RMB1.058 billion in cash. On the same day, the Company entered into a Hainan Nuclear Interest Transfer Agreement with Huaneng Group, pursuant to which the Company proposed to acquire an equity interest representing 30% of the registered capital of Hainan Nuclear from Huaneng Group for a consideration of RMB174 million in cash. The closing of these two acquisitions are subject to applicable departments' approval.
The transfer is part of the implementation of Huaneng Group's undertaking made to the Company that the Company will become the only platform for the ultimate integration of Huaneng Group's conventional energy businesses, which is beneficial to the Company for optimizing the structure of the power generating assets, accelerating the construction of clean energy business, further extending to the upstream business and enhancing coal storage and transportation capacity as well as stabilizing fuel supply for the coastal power plants. After completion of the acquisition of interests in Hainan Nuclear, the Company will further expand its scope of business areas through entering into the power market of Hainan Province and enhance its scale advantage and market position in the economically developed regions in the southeast coast.
The board directors(include the independent non-executive directors) of the Company are of the view that the two transactions are in the ordinary course of business of the Company, and on normal commercial terms that are fair, reasonable and in the interests of the Company and its shareholders as a whole.
For details of the two transactions please refer to the announcements published by the Company on The Stock Exchange of Hong Kong Ltd. and Shanghai Stock Exchange.
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