Power plant parent plans stake split to raise distribution control

Beijing Datang Power Generation said parent North China Power Group planned to sell half its 69.81 per cent stake in the H share to three companies in exchange for full control of power distribution in Beijing, Hebei and Tianjin.

The move comes as Beijing pushes for the separation of power generation from distribution.

The disposal plans - subject to the approval of relevant mainland authorities - will see North China Power sell 1.77 billion shares, or 34.38 per cent of the company, trimming its stake to 35.43 per cent.

The state-held legal-persons shares, which are nontradeable, will be sold to the power investment arms of the governments of Beijing, Hebei and Tianjin.

Beijing International Power Development and Investment will increase its stake to 13.01 per cent from 1.86 per cent of the company.

Hebei Construction Investment's stake will rise to 13.01 per cent from 0.62 per cent.

Tianjin Jinneng Investment will have 10.84 per cent of the firm.

The trio will have to give up the North China power network covering Beijing, Hebei and Tianjin.