It is reported that Guangdong Electric Power Development intends to acquire CNY 7.463 billion worth of power generation assets from controlling shareholder, Guangdong Electric Power Group.

The assets will be paid for through the issuance of 1.58 billion shares to Guangdong Electric Power Group at CNY 4.79 per share. The assets to be acquired include a 60% stake in Shenzhen Guangqian Power, a 35% stake in Huizhou Natural Gas Power, a 40% stake in Shipishan Power Development, a 45% stake in Pinghai Power Plant, a 40% stake in Honghai Bay Power Plant, a 20% stake in Huayue Diantaishan Power Generation and a 15% stake in Power Industrial Fuel.

After the asset restructuring, the company sales revenue is expected to hit CNY 3.22 billion next year up by 26.45%YoY from 2011. Net profit attributable to shareholders is projected to increase 5.42%YoY to CNY 882 million in 2012.

Guangdong Electric Power currently has installed power generation capacity of 6.58 million kilowatts. The assets to be acquired will add installed capacity of 5.07 million kilowatts.

Guangdong Electric Group said it will inject all of its power generation assets into the listed company over the next five years.

(Sourced from yicai.com)