Shaanxi Coal to acquire 89% stake in power unit for $2.2B

Shaanxi Coal Industry (SSE: 601225) plans to acquire an 88.6525% stake in Shaanxi Coal and Electric Power Group from its parent company, Shaanxi Coal Industry Group, for approximately $2.2 billion (¥1.57 trillion). The deal, classified as a related-party transaction, will be settled in cash in two installments, with 50% due within 30 days of signing and the remaining 50% within one year. The acquisition price is based on an independent valuation of Shaanxi Coal and Electric Power Group, conducted with a baseline date of October 31, 2024. The deal aims to strengthen Shaanxi Coal's "coal-power integration" strategy and reduce related-party transactions. The transaction is subject to shareholder approval and outstanding non-operating funds between the parties will be settled before the acquisition is finalized.