CGN Power shares fall after it buys parent’s nuclear assets for 9.92bn yuan
Headline purchase is 61pc stake in Guangxi Fangchenggang Nuclear Power
CGN Power’s shares dropped 2.5 per cent on Monday after it revealed it was buying three assets from its parent, China’s largest nuclear power projects developer China General Nuclear Power Corp, for 9.92 billion yuan.
The company will purchase the parent’s 61 per cent stake in Guangxi Fangchenggang Nuclear Power, which is developing a 6 giga-watt nuclear power generation project in Fangchenggang, Guangxi Zhuang autonomous region.
It will also buy 100 per cent of CGN Lufeng Nuclear Power and 100 per cent of China Nuclear Power Engineering.
The proposed transaction will “further consolidate our strategic position as CGN’s sole [listed] platform for nuclear power generation, ... [improve] our construction and management capability and reduce our nuclear power [plant] construction costs”, the firm said in a filing on Monday to Hong Kong’s bourse.
CGN Lufeng is developing a 2.5 GW nuclear power plant in Lufeng, Guangdong province, which is undergoing preparatory work after receiving government approval.
CGN Engineering is a project construction management firm, which has completed 12 reactors in China since its inception in 1997. It has also won order for another 12 reactors.