China Resources Power gets approval from Hong Kong bourse to spin off renewable energy assets to list in Shenzhen
- The A-share listing will raise additional funds for the company’s expansion in wind and solar power projects as the mainland seeks carbon neutrality
- CRP, which is listed in Hong Kong, will maintain at least 70 per cent control of the new entity
China Resources Power (CRP), one of the largest Hong Kong-listed power producers in mainland China, has received the green light from the city’s bourse to separately list its renewable energy business in Shenzhen.
The move will raise additional funds to finance the company’s aggressive expansion of wind and solar power projects, and achieve a higher asset valuation for shareholders, the company said in a filing to the Hong Kong stock exchange late on Sunday.
“The board believes that the proposed spin-off and A-share listing will allow the [new holding company] to have direct access to equity financing … [and] provide sufficient funds for the acceleration and vigorous development of its renewable energy business,” it said.
CRP aims to achieve a higher stock market valuation for the renewable assets business compared with its own, it added.
The company that will hold the assets is expected to submit an application to the Shenzhen Stock Exchange in the second half of the year.
The completion date will depend on the vetting process and market conditions, CRP said.
The number of A-shares to be issued will amount to 15 to 30 per cent of CRP’s enlarged issued share capital after the transaction.
The company’s stake in the new entity will be diluted to no less than 70 per cent after the listing.