Huaihe Energy progresses on major asset restructuring

Huaihe Energy (SSE:600575) announced continued progress on its major asset restructuring plan, involving the acquisition of an 89.30% stake in Huaihe Energy Power Group from its controlling shareholder, Huainan Mining (Group) Co. The deal, structured as a share issuance and cash payment, is deemed a major asset restructuring under regulations and involves connected transactions. It has received preliminary approval from the Anhui Provincial Government's State-owned Assets Supervision and Administration Commission and in principle approval from Huainan Mining and its indirect controlling entity, Huaihe Energy Holding Group. The company will proceed with further board and shareholder approvals, and is working with intermediaries to advance the transaction. Huaihe Energy reminded investors that the deal is still subject to regulatory approvals and carries potential uncertainties.