China's electricity generator Huaneng Power International Inc. (HPIC) will pay an aggregate 9.3 billion yuan (about 1.5 billion U.S. dollars) to its parent and connected companies to buy interests of ten power plants, the company said Tuesday.
HPIC will pay for the transactions using cash from its own funds to Huaneng Group and Huaneng International Power Development Corp (HIPDC), the company said in statements to the Shanghai and Hong Kong stock exchanges.
According to the transfer agreements, HPIC will acquire interests in Hainan Power, the Wuhan Power, the Suzhou Thermal Power, the Dalongtan Hydropower and the Hualiangting Hydropower from Huaneng Group at a total price of 7.34 billion yuan
Simultaneously, HPIC will buy the interests of the Chaohu Power, the Ruijin Power, the Anyuan Power, the Jingmen Thermal Power and the Yingcheng Thermal Power from HIPDC for 1.94 billion yuan.
Huaneng Group is the ultimate controlling shareholder of the HPIC by holding a 51.98 percent of direct interest and 5 percent indirect stakes in HIPDC.
HIPDC holds 36.05 percent of stakes in HPIC.
Share prices of HPIC both rose more than 4 percent in Shanghai and Hong Kong during early trading on Tuesday.