Stocks News
- Huaneng buys 9.08% of Shenzhen Energy
Date: 20-Dec-2007 Sources: (Shenzhen Daily)
HUANENG Power International Inc., China's second-largest power producer by market value, paid 1.52 billion yuan (US$206 million) for a 9.08 percent stake in Shenzhen Energy Investment Co. to expand in southern China.
Huaneng bought 200 million new shares at 7.60 yuan each through a private offer, Hong Kong and Shanghai-listed Huaneng said in a statement yesterday. The price was an 8 percent discount to Shenzhen Energy's closing shares of 8.3 yuan Dec. 5 last year, when Huaneng first announced the acquisition plan.
The stake will allow Huaneng to benefit from surging electricity demand in Guangdong Province, the country's biggest manufacturing hub. China's electricity demand is expected to rise faster than expected in the next three to five years because of the nation's economic growth, according to a Dec. 6 Credit Suisse Group report.
Shenzhen Energy's 2007 net income would probably more than double from last year's 800 million yuan after including earnings generated at power plants bought from its parent, the Shenzhen-listed company said in a statement yesterday.
Last year, the Shenzhen-based power plant operator reported net profit of 800.1 million yuan and earnings per share of 0.67 yuan.
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