GUANGDONG Investment looks set to close a deal in the first half to invest about 120 million yuan (about HK$111.36 million) in a power plant in Meizhou, Guangdong, officials say.
The company would take a 12.25 per cent stake in the Meixian B plant through its 49 per cent-owned joint venture with Guangdong Power Holding Company - Guangdong Power Investment - they said.
The joint venture would hold a 25 per cent stake in the plant.
Guangdong Investment managing director Chen Dazhi said the project would produce a return of about 16 per cent.
The project was pitched at a price earnings multiple of about six times.
Mr Chen said although growth in demand for electricity in Guangdong had slowed due to the austerity programme, supplies would still be inadequate.
The plant, with an estimated price tag of 1 billion yuan, would feature two generating units, each with an installed capacity of 125,000 kilowatts, Mr Chen said.