CGN Power expands nuclear capacity, revises service caps in RMB9.38bn acquisition

CGN Power Co. will acquire 82% of Huizhou Nuclear Power, 100% of Huizhou No. 2 Nuclear Power, 100% of Huizhou No. 3 Nuclear Power, and 100% of Zhanjiang Nuclear Power from its controlling shareholder, CGN. The total consideration for these acquisitions is approximately RMB9.38 billion. This move, approved by independent non-executive directors, aims to mitigate competition and expand CGN Power's operating and reserved nuclear capacity by approximately 7,222MW. The valuation, conducted by Beijing Huaya Zhengxin Assets Appraisal Co., Ltd., used an asset-based approach, valuing Huizhou Nuclear Power at RMB9.78 billion and Huizhou No. 2 Nuclear Power at RMB1.35 billion.

The acquisition also necessitates a revision of the annual caps for technical support and maintenance services received from the CGN Group for the years ending December 31, 2025, 2026, and 2027. The revised caps are RMB5,400 million, RMB5,500 million, and RMB6,000 million, respectively. This increase from original caps of RMB3,430 million, RMB3,450 million, and RMB3,430 million is driven by higher demand from newly acquired projects, new state-approved nuclear projects, and increased investment in R&D and digitalization services.

Shareholders will also vote on the abolishment of the Supervisory Committee, with its duties transferred to the Audit and Risk Management Committee of the Board. Additionally, an employee representative director will be added to the board, increasing director oversight and balancing the board's structure.