BEIJING, Oct. 26 /Xinhua-PRNewswire-FirstCall/ -- Huaneng Power
International, Inc. (the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today
held a board meeting in Beijing. During the meeting, the Board discussed and
approved the acquisitions of the following power companies' equity interests
for a total consideration of RMB2.025 billion:
1. 60% equity interest of Sichuan Huaneng Hydro Power Development Limited
Liability Company from China Huaneng Group ("Huaneng Group");
2. 65% equity interest of Gansu Huaneng Pingliang Power Generation Limited
Liability Company ("Pingliang Power") from Huaneng Group.
Accordingly, the Company signed transfer agreements with Huaneng Group on
the same day. The above two transactions still require shareholders' approval
at the extraordinary general meeting of the Company and approvals from
relevant government authorities.
The acquisitions are in line with the Company's strategy of emphasizing
both coal and other types of fuel. The acquisitions also demonstrate a
continuation of the Company's business and development strategy of placing
equal emphasis on both acquisition and development. In light of the strong
increase in demand for power and shortage of coal supply in China, the
acquisitions of hydro power assets will rationalize the Company's fuel
structure. The acquisition of mine-mouth power plant -- Pingliang Power Plant
will bring about a decrease in fuel costs and as a result, will enhance the
Company's profitability and effectively contain the increase in fuel costs.
The acquisitions will enlarge the Company's operating scale and
geographical scope as well as improve the generation and fuel structure of the
Company, thus enhancing the profitability of the Company as well as
consolidating the Company's position as China's largest listed independent
power company. Upon completion of the transactions, the Company's equity-based
generation capacity will increase by 1,146MW, or an increase of 6.1% from
18,832MW to 19,978MW. In addition, the acquisitions will also bring
additional equity-based generation capacity under construction totaling 389MW.
The Company has appointed JP Morgan Securities (Asia Pacific) Limited as
the financial adviser in connection with the transaction. N M Rothschild &
Sons (Hong Kong) Limited and Guotai Junan Securities Limited acted as the
independent financial advisers.
Huaneng Power International, Inc. develops, constructs, operates and
manages large thermal power plants in China nationwide, with a total
generation capacity of 18,832MW on an equity basis. The Company wholly owns
sixteen power plants, and has controlling interests in seven power plants and
minority interests in four power companies. Today, it is one of the largest
independent power producers in China.
For further information, please contact:
Ms. Meng Jing / Ms. Zhao Lin
Huaneng Power International, Inc.
Tel: (8610) 6649 1856 / 1866
Fax: (8610) 6649 1860
Email: ir@hpi.com.cn
Ms. Christy Lai / Ms. Edith Lui
Rikes Communications Limited
Tel: (852) 2520 2201
Fax: (852) 2520 2241
SOURCE Huaneng Power International, Inc.
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CONTACT:
Ms. Meng Jing, +8610-6649-1856, or Ms. Zhao
Lin, +8610-6649-1866, both of Huaneng Power International, Inc.,
Fax: +8610-6649-1860, ir@hpi.com.cn; or Ms. Christy Lai, or Ms.
Edith Lui, both of Rikes Communications Limited, +852-2520-2201,
or Fax: +852-2520-2241, for Huaneng Power International, Inc.
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