Aluminum Corporation Of China Limited completed the acquisition of an additional 23.66% stake in Ningxia Electric Power Corporation from Huadian Power International Corporation Limited.
For the year ending on December 31, 2011, Ningxia Electric Power reported net profit before tax and extraordinary items of CNY 340.12 million, net profit after tax and extraordinary items of CNY 286.15 million and net assets of CNY 4.2 billion. The deal is subject to the approval of shareholders of Huadian Power and the shareholders have granted an advance approval for the sale at the extraordinary general meeting held on December 28, 2012. Aluminum Corporation may proceed with the registration of transfer of the stake with the competent business registration authority after the first payment of the consideration is made. Pursuant to the relevant regulations of SUAEE, in order to secure the second payment of the consideration, Aluminum Corporation shall pledge the Ningxia Group Interest to Huadian Power after the registration of transfer is completed and until the second payment of the consideration is settled in full. Huadian Power intends to use the net proceeds from the sale as working capital. The gain expected to accrue to Huadian Power from the sale is approximately CNY 280 million. China Enterprise Appraisals Co., Ltd. acted as appraiser in the transaction. Haiwen & Partners acted as legal advisor for Aluminum Corporation Of China Limited and Ningxia Electric Power Corporation.
Aluminum Corporation Of China Limited (SEHK:2600) completed the acquisition of an additional 23.66% stake in Ningxia Electric Power Corporation from Huadian Power International Corporation Limited (SEHK:1071) on January 11, 2013.