TO fund ambitious expansion of its core businesses, Guangdong Investment plans a restructuring to streamline its diversified operations.
'We are considering different ways of streamlining, including a disposal of the company's non-core assets,' said Hou Deyou, executive director of the company, which recently acquired blue-chip status.
He said another option might be to spin off its non-core businesses.
However, Mr Hou said no plans had been finalised; more details were expected soon because the restructuring programme was one of Guangdong Investment's major focuses this year.
'One possible move is to fund the company's series of expansions from its core businesses in Guangdong province, such as power plant investments, cement and retail operations.' Through a 51 per cent owned subsidiary, Guangdong Investment is negotiating to acquire a controlling stake in a 550,000 kilowatt power plant in the province.
The company now has two power operations in Guangdong - the Zhongshan and Shaoquan power plants. Following a series of acquisitions last year, Mr Hou said the company was on the path to further expansion, including shifting the focus to retailing in Guangdong, where strong economic growth was expected.
Mr Hou said the company was planning to buy a controlling stake in one of the biggest mainland retailers in Guangdong.