H-share Huaneng Power International and eight investors are poised to move into the fast-growing Guangdong power market after expressing a strong interest in the state-owned Shenzhen Energy Group. The investors, which include Hong Kong listed property firm Goldwiz Holdings, Electricity de France and mainland-backed China Resources Power, signed a non-legally binding letter of intent last week, pending a formal agreement. The purchase, if realised, would allow the buyers instant access to 77 per cent of Shenzhen's power market. With a total installed capacity of 3,080 megawatts, Shenzhen Energy controls several power plants, including Mawan General Power Plant, Shajiao B Power Plant, Nanshan Thermal Power Plant and Shenzhen West Power Plant. Shenzhen Energy also owns significant stakes in two A-share power firms. According to a Goldwiz statement, the Shenzhen government's investment arm, Shenzhen Investment, is restructuring the shareholding of Shenzhen Energy. It said the restructuring might involve the sale of Shenzhen Investment's interest in Shenzhen Energy and the issue of new Shenzhen Energy shares. 'The restructuring will be determined by the Shenzhen State-owned Assets Administration Office based on the asset valuation of Shenzhen Energy,' Goldwiz said. Some analysts said the restructuring offered opportunities to tap into the Guangdong power market, well-known for frequent power shortages. However, some analysts were dubious about the potential deal, which reportedly involves the sale of Shenzhen Investment's 49 per cent stake in Shenzhen Energy for 3.47 billion yuan (about HK$3.27 billion). One analyst said: 'There are many questions about the potential deal. For example, will all the parties buy a combined stake or will only one party be allowed to buy the stake, what will the size of the stake be, and how much will the stake cost? 'It is too early to say what the possible impact will be on the interested parties, especially on Huaneng.' Although limited information was available, Goldwiz shares jumped 32 per cent at one stage yesterday before closing 13.74 per cent higher at HK$1.49. Huaneng, China's largest independent power producer, declined to comment on the deal. Some analysts associated the deal with Guangdong's power reform. Guangdong has been taking the lead in the mainland's reform process, with a power generation and transmission split last August. 'To a certain extent, the deal may represent the latest move in the reform in Guangdong province,' an analyst said. He pointed out that the Guangdong authorities' decision to sell some power plants recently raised the curtain on the sale of state-owned power assets. Details of implementing power pooling in Guangdong were expected to be announced in the next two or three months, he said.