China Shenhua progresses with asset acquisition, capital raising plan

China Shenhua Energy Co., Ltd. is progressing with its plan to issue A-shares and pay cash to acquire coal, pit-mouth thermal power, and coal-to-oil/gas/chemical assets from its controlling shareholder, China Energy Investment Corporation Limited. The company is also raising supporting funds. This transaction, classified as a related-party transaction, is not expected to constitute a major asset reorganization or alter the company's actual control.

The company's A-shares were suspended from trading on August 4, 2025, and resumed on August 18, 2025, following the disclosure of the preliminary transaction plan. Since the announcement, intermediary agencies have initiated due diligence, auditing, and valuation work.

The transaction is subject to multiple approvals, including further review by the company's board, shareholder approval, Shanghai Stock Exchange approval, and registration with the China Securities Regulatory Commission, highlighting the inherent uncertainties in obtaining final clearances. Investors are advised to review the detailed risk factors outlined in the preliminary transaction plan.