Datang Power Generation International, a state-owned electricity supplier, has given up an opportunity to take control of a listed chemical firm as negotiations failed to produce an agreement.
The acquisition would have enabled the company to inject its coal-to-chemical assets into a listed unit and raise funds by selling shares at a higher value, an analyst said.
The Hong Kong-listed unit of China Datang Group, one of the nation's five national power groups, said last night that it had held a series of talks with relevant parties about participating in the bankruptcy restructuring proposal of Jinhua Chemical Group.
Jinhua Chemical is the parent of Shenzhen-listed chemical firm Jinhua Group Chlor-Alkali.
'As the conditions for such proposal are premature, the company decided that it will not participate in the restructuring proposal for the time being,' Datang Power said.
'Upon the conditions of the proposal becoming mature, the company intends to further participate in the restructuring.'
Jinhua Group said on Tuesday that talks on its parent's restructuring at one point made good progress, but the two sides failed to reach an agreement due to unspecified factors. As a result, a second debtors' meeting would not be held, it added.