China Shenhua Energy to acquire assets, boost capital with share issuance

China Shenhua Energy announced a major transaction to acquire 100% equity interests in 10 companies and partial interests in two others (Shenyan Coal 41%, Jinshen Energy 49%) from China Energy and Western Energy, valued at RMB133,598 million. The transaction will be settled with RMB40,080 million in consideration shares and RMB85,791 million in cash, plus RMB7,728 million cash for Inner Mongolia Construction Investment. Concurrently, the company proposes to issue new A shares to raise supporting funds, not exceeding 100% of the A shares consideration and 30% of total share capital, to no more than 35 specific investors.

In related developments, China Shenhua Energy also approved a RMB15 billion capital increase for its Finance Company, with China Energy subscribing for RMB9 billion and China Shenhua Energy for RMB6 billion, maintaining existing shareholding ratios. Additionally, the company entered into a 2026 Factoring Services Agreement with Guoneng Factoring, an indirect subsidiary of China Energy, for factoring and related services. The maximum daily balance for factoring services is capped at RMB10,000 million for 2026.

These transactions are subject to various approvals, including a shareholders’ meeting and regulatory consents. The asset acquisition is expected to significantly enlarge China Shenhua Energy’s operations and enhance its integrated operational advantages.