Huaneng Power International unveils 15 billion yuan plants acquisition from parent

PUBLISHED : Saturday, 15 October, 2016, 12:22am
UPDATED : Saturday, 15 October, 2016, 12:22am

Huaneng Power International, the listed flagship of China’s largest power firm China Huaneng Group, said it plans to buy 15.1 billion yuan worth of power generation assets from its parent.

The deal involves an agreement to buy four wholly owned companies that together hold a basket of assets comprised mainly of about 50 power plants fuelled by coal-fired and renewable energy, it said in a filing to Hong Kong’s stock exchange late on Friday.

“The capacity of generating units [to be acquired] will allow the company to further expand its business scale, increase its market share and enter the Jilin and Heilongjiang market for the first time,” Huaneng Power said.

The basket of assets have a combined net asset value of 10.24 billion yuan.

They will increase Huaneng Power’s total installed capacity by 15.94 gigawatts, amounting to 19.3 per cent of the company’s total installed capacity of 82.57 GW at the end of June.

Its parent had 160.6 GW of total installed capacity at the end of last year.

More than 80 per cent of the plants are coal-fired, with the remainder hydro, solar, wind and biomass units.

The deal will also add 3.67 GW to Huaneng Power’s pipeline of projects under construction, of which more than 90 per cent are coal-fired units.

The assets had a combined net profit of 2.2 billion yuan in this year’s first five months, Huaneng Power said.

The company posted a net profit of 6.18 billion yuan in the first half of this year.