October 10, 2017 / 1:52 AM / in 9 months

China Power to buy clean energy assets from parent for $750 million

HONG KONG (Reuters) - China Power International Development Ltd said it would buy clean energy assets from its state-owned parent State Power Investment Corporation (SPIC) for 4.97 billion yuan ($750.4 million), accelerating a push away from coal-fired generation.

The parent will inject natural gas, hydro, solar and wind power assets into the company, expanding its foothold in five provinces in mainland China — Guangdong, Guangxi, Anhui, Hubei and Shandong, the Hong Kong-listed firm said in a filing late on Monday.

The acquisitions will boost China Power’s total attributable installed capacity by 11.8 percent and increase the share of clean energy to about one-third of its capacity, the company said. Its power plants are mostly coal-fired.

China Power said it would fund the acquisitions partly through a sale of HK$2 billion ($256.25 million) in new shares in a one-for-three offer to existing shareholders. The remainder will be financed by internal resources.

Reporting by Donny Kwok; Editing by Sonali Paul

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