China Power buys hydropower assets for $654 mln

HONG KONG, June 9 (Reuters) - China Power International Development Ltd 2380.HK said it would buy a 63 percent stake in Wu Ling Power, the largest independent hydropower producer in Hunan province, from its parent for 4.47 billion yuan ($653.8 million).

The company’s attributable installed capacity will increase to 11,282 megawatts on completion of the deal, up 25 percent from 9,037 megawatts as of the end of 2008, China Power said in a statement late on Monday.

The acquisition, which will boost its presence in central China, will be settled by the issuance of 3.13 billion yuan worth of shares at HK$2.408 each, and the remainder will be paid in cash, the company said.

The consolidated hydropower capacity will account for 32 percent of the company’s total consolidated capacity on completion of the deal, it added. (US$1=HK$7.8=6.837 yuan) (Reporting by Donny Kwok; Editing by Ken Wills)