MengDian HuaNeng pursues renewable assets through stock, cash deal

Inner Mongolia MengDian HuaNeng Thermal Power Corp (SSE:600863) is pursuing a significant transaction involving the issuance of shares and a cash payment to acquire assets from Inner Mongolia North Union Power, including its 70% equity in ZhengLan Banner Wind Power Co., Ltd., and its 75.51% equity in North Union Domus New Energy Co., Ltd.. The acquisition is subject to shareholders approving a proposed private placement to raise no more than CNY 285,000,000 to finance the cash component. Guotai Haitong Securities is acting as the independent financial advisor for this deal. A separate asset appraisal report from Beijing ZhongQiHua Assets Appraisal Co., Ltd. supports the acquisition of the targets, as do subsequent financial statement audits. In the event of any change the asset purchase and private placement may adjust accordingly.