China Shenhua updates on major asset acquisition, fund raising

China Shenhua Energy Company Limited is proceeding with a plan to issue A-shares and pay cash to acquire assets from its controlling shareholder, National Energy Investment Group Co., Ltd. These assets include coal, pithead coal power, coal-to-oil, coal-to-gas, and coal chemical assets. This transaction also involves raising supporting funds through A-shares and constitutes a connected transaction, though it is not expected to change the company's actual controller.

The company's A-share stock was suspended from trading on August 4, 2025, and resumed trading on August 18, 2025. On August 15, 2025, the board of directors and supervisory committee approved resolutions related to the transaction. Intermediary agencies have commenced due diligence, with auditing and valuation work currently underway.

The transaction remains subject to multiple conditions, including further approval from the company’s board of directors and shareholders, review by the Shanghai Stock Exchange, registration approval from the China Securities Regulatory Commission, and other necessary regulatory approvals. Investors are advised to review the detailed risk factors and approval procedures outlined in the previously disclosed transaction preliminary plan.