BEIJING, Dec. 1, 2010 /PRNewswire-Asia/ -- Huaneng Power International, Inc. (the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced its proposed acquisition of equity interests in Shanghai Time Shipping Co., Ltd. ("Time Shipping") from Huaneng Energy & Communications Holdings Co., Ltd. ("HEC"), and its proposed acquisition of equity interests in Hainan Nuclear Power Co., Ltd. ("Hainan Nuclear") from China Huaneng Group ("Huaneng Group").
On December 1, 2010, the Company entered into a Time Shipping Interest Transfer Agreement with HEC, pursuant to which the Company proposed to acquire an equity interest representing 50% of the registered capital of Time Shipping from HEC for a consideration of RMB1.058 billion in cash. On the same day, the Company entered into a Hainan Nuclear Interest Transfer Agreement with Huaneng Group, pursuant to which the Company proposed to acquire an equity interest representing 30% of the registered capital of Hainan Nuclear from Huaneng Group for a consideration of RMB174 million in cash. The closing of these two acquisitions are subject to applicable departments' approval.
The transfer is part of the implementation of Huaneng Group's undertaking made to the Company that the Company will become the only platform for the ultimate integration of Huaneng Group's conventional energy businesses, which is beneficial to the Company for optimizing the structure of the power generating assets, accelerating the construction of clean energy business, further extending to the upstream business and enhancing coal storage and transportation capacity as well as stabilizing fuel supply for the coastal power plants. After completion of the acquisition of interests in Hainan Nuclear, the Company will further expand its scope of business areas through entering into the power market of Hainan Province and enhance its scale advantage and market position in the economically developed regions in the southeast coast.
The board directors (include the independent non-executive directors) of the Company are of the view that the two transactions are in the ordinary course of business of the Company, and on normal commercial terms that are fair, reasonable and in the interests of the Company and its shareholders as a whole.
For details of the two transactions please refer to the announcements published by the Company on The Stock Exchange of Hong Kong Ltd. and Shanghai Stock Exchange.
About the Company
The Company is one of China's largest listed power producers with controlled generation capacity of 50,033 MW and equity-based generation capacity of 46,512MW. The power plants of the Company are located in 17 provinces, municipalities and autonomous regions in China. The Company also has a wholly-owned power company in Singapore.
About Huaneng Group
Huaneng Group is the controlling shareholder of Huaneng International Power Development Corporation ("HIPDC"), holding a 51.98% direct interest and a 5% indirect interest in HIPDC. At the same time, Huaneng Group holds an aggregate of 8.92% direct and indirect interest in the issued shares of the Company. HIPDC is the controlling shareholder of the Company, holding 42.03% of the issued shares of the Company.
HEC is a company incorporated in China and a wholly-owned subsidiary of Huaneng Group. Its principal scope of business includes wholesale of coal, investment and management in infrastructure projects of coal mines, road, port, maritime transportation services, international tendering and agency, and import and export business.
About Time Shipping
Time Shipping was incorporated in China on 28 February 2001 and its business includes international general cargo shipping, domestic goods transportation between ports in the coastal areas and along the middle and lower reaches of Yangtze River, domestic waterway goods transportation and freight forwarder services, shipping agency, consultancy of shipping management and related businesses, vessel repair, domestic trading, self-operation and agency of import and export of various commodities and technologies (except those commodities and technologies restricted by the State to be operated by certain companies and banned for import and export by the State), processing of purchased materials and operation of "three types of processing plus compensation trades" and counter trade and transit trade operations. Currently Time Shipping owns 28 vessels (including self-owned and finance leased) and has a registered capital of RMB1.2 billion.
About Hainan Nuclear
Hainan Nuclear is incorporated in China on 3 December 2008 and its businesses include the construction, operation and management of nuclear power plants; production and sales of electricity and related products; technology advisory and services. Hainan Nuclear is in the course of constructing two pressurized water reactors of 650MV (units 1 and 2) at Hainan Changjiang Nuclear Construction Phase I. The registered capital of Hainan Nuclear is RMB403.68 million.
For enquiries, please contact:
Huaneng Power International, Inc.
Ms. MENG Jing / Ms. ZHAO Lin
Tel: (8610) 6608 6765 / 6322 6596
Fax: (8610) 6641 2321
Wonderful Sky Financial Group Limited
Ms. Katy CHAN / Mr. John GAO / Ms. Olive ZHANG
Tel: (852) 3970 2119 / 3970 2186 / 3970 2180
Fax: (852) 2815 1352
SOURCE Huaneng Power International, Inc.