Hubei Energy Group: CTG to boost stake in private placement

Hubei Energy Group announced a private placement of 597,938,144 A-shares to China Three Gorges Corporation (CTG), its controlling shareholder, at 4.85 yuan per share, raising a total of 2,899,999,998.40 yuan. This transaction, set to complete on November 19, 2025, will increase CTG's total holdings from 15.75% to 22.87%, and CTG and its affiliates’ combined stake from 46.26% to 50.80%. The new shares will be subject to a 36-month lock-up period, while existing shares held by CTG and its affiliates will have an 18-month lock-up.

This issuance will passively dilute the stake of Hubei Hongtai Group Co., Ltd., the second largest shareholder, from 28.12% to 25.74%, exceeding a 1% dilution threshold. The company's chairman and senior executives will also see a passive dilution in their proportional holdings due to the increased total share capital, although their number of shares remains unchanged.

The proceeds of 2,894,700,957.25 yuan after expenses, will be invested in the Luotian Pingtuan Pumped Storage Power Station project, with a total investment of 93.10 million yuan. Hubei Energy Group emphasizes that the transaction will not alter the controlling shareholder or actual controller, thus maintaining stability in its governance structure and operations.