MengDian HuaNeng revises asset acquisition plan for new energy expansion

Inner Mongolia MengDian HuaNeng Thermal Power Corp (MengDian HuaNeng) has revised its report concerning the issuance of shares and cash payments for acquiring assets and raising supporting funds, a connected transaction. This revision follows an inquiry from the Shanghai Stock Exchange's M&A Restructuring Review Committee (SSE).

The company plans to acquire 70% equity in Northern Shangdu Zhenglanqi New Energy Co., Ltd. and 75.51% equity in Northern Duolun New Energy Co., Ltd. from Northern United Power Co., Ltd., a controlling shareholder. The initial acquisition percentage for Northern Shangdu Zhenglanqi was 60% and has been increased to 70%.

The share issue price has been adjusted to RMB 3.46 per share, not lower than 80% of the average trading price over the 60 trading days prior to the pricing benchmark date. Both Northern Shangdu Zhenglanqi and Northern Duolun’s equity values were re-evaluated by China Enterprise Appraisals Co., Ltd. following adjustments to VAT policies. The total transaction consideration is RMB 533,615.66.