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CGN powers up for a mainland listing
Posted on Monday, 12 February 2018 14:22
China General Nuclear Power’s Hong Kong-listed arm, CGN Power, is rolling out plans to hold an A-share sale on the Shenzhen Stock Exchange to finance the construction of nuclear power units.
While a price was not disclosed, the proposed offering of up to 5.05 billion stocks was worth HKD 10.20 billion (USD 1.31 billion) when the bell rang in Hong Kong this afternoon.
CGN needs to obtain approval from shareholders for the sale of a 10.0 per cent post-issue stake, not to mention that of the China Securities Regulatory Commission.
Proceeds are slated to fund the construction of nuclear power units at the Yangjiang and Fangchenggang nuclear power stations to increase total installed operating capacity by 4,532 MW.
However, money will also replenish working capital so as to improve the group’s financial structure and reduce risks.
In December, CGN sold off 17.0 per cent of Yangjiang for CNY 5.00 billion (USD 698.67 million), reducing its stake to 61.2 per cent
As of 30th June 2017, the group managed 20 nuclear power generating units in operation, with a total installed capacity of 21,470 MW, and is building another eight with an overall 10,270 MW.
The total installed capacity of the units in operation and under construction accounted for 61.8 per cent and 43.9 per cent of the market share in mainland China, respectively.
In the last five years, electric power generating companies have announced or completed a total 840 capital increases, according to Zephyr, the M&A database published by Bureau van Dijk.
Of these, Chinese industry players were the most prolific dealmakers and carried out some of the largest announced cash calls, including a USD 3.74 billion fundraiser by China Yangtze Power in 2016.
© Zephus Ltd