(Adds details, shares to resume trade)
HONG KONG May 10 China Resources Power Holdings
Co Ltd said on Friday it would buy wind farms in 10
provinces in China from its controlling shareholder, sate-owned
conglomerate China Resources (Holdings) Co Ltd, for HK$4.3
billion ($553 million).
In a separate statement, China Resources Power said it would
merge, as expected, with China Resources Gas Group Ltd
and would issue 97 new China Resources Power shares for every
100 China Resources Gas shares held, in a non-cash deal.
The offer represents a value of HK$24.64 per China Resources
Gas share, or a premium of 12.8 percent over its last closing
The merger will create a $22 billion energy group that can
negotiate better terms for natural gas supplies from the state,
and analysts have said it will help manage costs and improve
It will result in an integrated energy and utility group
with operations in more than 20 provinces, autonomous regions
and municipalities in China, the world's largest energy
consumer, the companies said in a joint statement.
On completion of the merger, shares in China Resources Gas
will be withdrawn from the Hong Kong Stock Exchange, and China
Resources Power will change its name to China Resources Energy
The new company aims to explore upstream business
opportunities in natural gas production such as conventional
natural gas, coal mine methane, coke oven gas and other
unconventional gas sources such as shale gas.
It may also consider building additional mid-stream
infrastructure such as LNG liquefaction facilities to deliver
natural gas to China Resources Gas' existing downstream
Shares in both companies, which have been suspended since
Monday pending the announcement, will resume trade on Friday.
China Resources Gas has seen its market capitalisation rise
17 times over the last five years to $6.3 billion on growing
demand for natural gas from residential users and industries
such as petrochemicals, ceramics and glass.
China Resources Power is an independent electricity producer
that relies on coal for over 92 percent of its power generating
For a statement on the acquisition please click here
For a statement on the merger please click here
($1 = 7.7590 Hong Kong dollars)
(Reporting by Donny Kwok; Editing by Anne Marie Roantree and