appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

appConfig

filter

json

liveArticle

Eric Ng

CLP Holdings said it’s keen to bid for a 17 per cent stake in a nuclear power plant that’s due to be auctioned by its business partner CGN Power, five years after a plan to invest in the project fell through.
“CLP has for a long time expressed interest in further investments in nuclear in China and we will quite possibly have a look at it,” the company’s spokesperson said in a statement.
CGN last Friday said in a filing to Hong Kong’s stock exchange that it plans to dispose of the minority stake via the China Beijing Equity Exchange, at a tender price of 5 billion yuan (US$744 million).
The plant is located in Yangjiang, 210 kilometres west-south-west of Hong Kong.
CGN, the listed unit of China’s largest nuclear power projects developer - state-owned China General Nuclear Power - will still hold a majority 61.2 per cent stake in the plant after the proposed sale.
It said the sale would help introduce “other appropriate shareholders,” improve its governance and management and expand its market share.
The prospective buyer must provide a written undertaking that it “can provide a strategic solution” to help Yangjiang expand sales in the electricity market.
Utilisation of mainland Chinese power plants have been falling, including nuclear ones, due to excess capacity and weak demand growth.
Investing in nuclear plants could potentially help CLP, the larger of Hong Kong’s two power utilities, meet its target of having 30 per cent of generation capacity coming from non-carbon emitting sources by 2020, up from 12 per cent in 2007.
Prospective bidder for the Yangjiang stake must have over 10 years of experience in the nuclear power generation industry.
CLP owns 25 per cent of the 22 year-old Daya Bay nuclear power plant in east Shenzhen, and buys 80 per cent of its output for its customers in Hong Kong. CGN owns the rest.
CLP said in July 2011 it would invest 4.8 billion yuan toward a 17 per cent stake in the Yangjiang plant which was under construction at the time, four months after Japan’s Fukushima nuclear disaster.
In September 2013, CLP said talks on the 17 per cent stake investment were suspended, citing delays both on approval by Beijing on the purchase and construction of the Yangjiang plant, following the post-Fukushima nuclear industry review.
Dennis Ip, Daiwa Capital Markets’ head of Hong Kong and China utilities, renewables and environment research, speculated in a report that CGN may use the proceeds to fund the acquisition of assets from its parent for 9.9 billion yuan announced late last month.
They include a 61 per cent stake in a nuclear project in Fangchenggang in Guangxi province, 100 per cent of a planned nuclear plant in Lufeng, Guangdong and 100 per cent of a firm that provides reactor construction management firm.
The proceeds from the Yangjiang sale could help lower CGN’s net debt-to-shareholders’ equity ratio to 165 per cent from 175 per cent after buying the three assets, Ip estimated.
Three of the Yangjiang plant’s units are in commercial operation, with three more slated to come on stream between 2018 and 2020, according to the Daiwa report.
Each has 1,086 megawatts of generating capacity, enough to meet roughly 800,000 mainland Chinese households’ annual power needs.


With Beijing’s backing, Hong Kong can plan for future energy crises

Beijing’s Xia Baolong, top energy official hold talks with CLP’s Michael Kadoorie

Hong Kong’s CLP Power hands out HK$100 shopping coupons to 600,000 customers

Hong Kong on ‘yellow alert’, Kadoorie says, as Middle East war fuels energy crisis

CLP Group

CLP says it’s keen to bid 17pc of Yangjiang power plant put up for auction by CGN

Yangjiang Nuclear Power Station has six 1,000 megawatt CPR-1000 pressurised water reactors. Photo: SCMP

CGN Power launches IPO in Monday roadshow, hopes to raise US$3.16b

CGN, which operates this nuclear power station in Guangxi, is to list in Hong Kong. Photo: SCMP Pictures

A Chinese cycles past the Daya Bay Nuclear Electricity Plant in Shenzhen. Photo: AP

Workers walk past a nuclear plant in China. CGN Power, the mainland's biggest nuclear company by installed capacity, launched an IPO to raise US$3.16 billion. Photo: AP

CGN unit buys stakes in Electricite de France wind farms in UK

Britain is viewed as having good wind resources and relatively stable policies, boosting the appeal of the assets for CGN. Photo AFP

China’s CGN Power in talks to buy parent’s Guangxi plant 

The first 1,080 MW unit of the Fangchenggang nuclear plant entered commercial operation at the start of the year. Photo: SCMP Pictures

Market volatility may trim CGN Power's first-day gains in IPO

CGN Power raised almost HK$24 billion in its initial public offering yesterday.

China’s CNOOC and CGN to work together on development of portable marine nuclear reactor 

(120509) -- SOUTH CHINA SEA, May 9, 2012 (Xinhua) -- Photo taken on May 9, 2012 shows deep-water drilling rig CNOOC 981 in the South China Sea, south China, May 9, 2012. China's first deep-water drilling rig CNOOC 981 started operations in the South China Sea at 9: 38 a.m. on Wednesday, marking "a substantial step" made by the country's deep-sea oil industry. The sixth-generation semi-submersible CNOOC 981 began drilling in a sea area 320 km southeast of Hong Kong at a water depth of 1,500 meters, according to China National Offshore Oil Corp. (CNOOC), the country's largest offshore oil producer. (Xinhua/Jin Liangkuai) (lfj)

A labourer collects plastic bags on a dust screen covering construction waste near a power plant in Zhengzhou, Henan province in this July 15, 2014 file photo. China Power Investment Corp is merging with the State Nuclear Power Technology Corp, as Beijing drives consolidation in its rapidly expanding nuclear power sector with the aim of eventually exporting reactors. The Chinese power producer currently controls about a tenth of China's nuclear power market, while the State Nuclear Power Technology Corp was formed in 2007 to handle nuclear technology transferred from U.S.-based Westinghouse Electric Co.. REUTERS/Stringer/Files (CHINA - Tags: BUSINESS POLITICS ENVIRONMENT) CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA

Situated in Fangchenggang, Guangxi Autonomous Region, Fangchenggang (Hongsha) Nuclear Power Station is planned with six 1000MWe-class PWR units and is invested by a joint venture of CGNPC and Guangxi Investment Group with the former as the primary player in project construction and operation management.

The China National Offshore Oil Corp's sixth-generation semi-submersible rig operates at a water depth of 1,500 meters. Photo: Xinhua

NewCLP says it’s keen to bid 17pc of Yangjiang power plant put up for auction by CGN

An auction of the stake may fetch 5 billion yuan

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}An auction of the stake may fetch 5 billion yuan

An auction of the stake may fetch 5 billion yuan