BEIJING, Oct. 14, 2016 /PRNewswire/ -- Huaneng Power
International, Inc. ("HPI" or the "Company") (NYSE: HNP;
HKEx: 902; SSE: 600011) today announced that the
Company and China Huaneng Group ("Huaneng Group") has entered into
(i) a transfer agreement concerning the transfer of certain equity
interests in certain companies (the "Transfer Agreement"), and (ii)
a profit compensation agreement (the "Profit Compensation
Agreement").
Subject to the satisfaction of the terms and conditions of the
Transfer Agreement and the Profit Compensation Agreement, upon
consummation of the transactions contemplated thereunder, HPI will
acquire from Huaneng Group: (i) 80% equity interests in the
registered capital of Huaneng Shandong Power Generation Co., Ltd.
(the "Shandong Power Interests"); (ii) 100% equity interests in the
registered capital of Huaneng Jilin Power Generation Co., Ltd. (the
"Jilin Power Interests"); (iii) 100% equity interests in the
registered capital of Huaneng Heilongjiang Power Generation Co.,
Ltd. (the "Heilongjiang Power Interests") and (iv) 90% equity
interests in the registered capital of Huaneng Henan Zhongyuan Gas
Turbine Power Co., Ltd. (the "Zhongyuan CCGT Interests", together
with Shandong Power Interests, Jilin Power Interests and
Heilongjiang Power Interests, the "Target Interests"). The Company
will acquire the Target Interests at a price of RMB 15,113,825,800. The Company will pay the
consideration in each transaction with its own funds.
The companies which equity interests are being acquired
currently engage in the investment, construction or operation of
various types of power generating facilities, the development of
conventional and renewable energy, and various related engineering
and technical support services. After the completion of the
transactions, HPI will increase its total operational installed
capacity by 15,937 MW, equity-based operational installed capacity
by 13,389 MW and capacity under construction by 3,666 MW. The
transaction will allow HPI to further expand its business and
increase its market share. In addition, this is the first time for
the Company to enter into Jilin
and Heilongjiang power market.
The Company's Board of Directors has approved the transactions
at a meeting on October 14, 2016, and
the Company entered into the Transfer Agreement and the Profit
Compensation Agreement on the same day.
Huaneng Group is the ultimate controlling shareholder of HPI. As
of October 14, 2016, Huaneng Group
holds a 75% direct interest and a 25% indirect interest in Huaneng
International Power Development Corporation ("HIPDC"), while HIPDC,
being the biggest direct controlling shareholder of HPI, holds
33.33% interest in HPI. Additionally, Huaneng Group also holds, in
HPI, a 10.23% direct interests, a 3.11% indirect interests through
China Huaneng Hong Kong Company Limited, a wholly-owned subsidiary
of Huaneng Group, and a 0.49% indirect interests through China
Huaneng Finance Corporation Ltd., a company controlled by Huaneng
Group. HPI has been strictly separate from both Huaneng Group in
terms of assets and financial matters, and the transactions will
not cause any change to such status.
The independent directors of the Company, including Li
Zhensheng, Yue Heng, Geng Jianxin, Xia
Qing and Xu Mengzhou, have considered the transactions and
issued independent opinion that the transactions are fair and will
not impair the Company's or its minority shareholders'
interests.
The transactions are subject to the approval by the Company's
shareholders. Huaneng and its affiliates having interests in the
transactions will abstain from voting at the extraordinary general
meeting.
Additional Information about the Transaction
The Company will file with the Securities and Exchange
Commission (the "SEC") a Current Report on Form 6-K regarding the
transaction. All parties desiring details regarding the transaction
are urged to review these documents, which are available at the
SEC's website (http://www.sec.gov).
~ End ~
About Huaneng Power International, Inc.
Huaneng Power International, Inc. is one of China's largest listed power producers with
controlled generation capacity of 82,571 MW and equity-based
generation capacity of 75,403 MW. The power plants of the Company
are located in 22 provinces, municipalities and autonomous regions
in China. The Company also has a
wholly-owned power company in Singapore.
For Enquires, Please Contact
Huaneng Power International, Inc.
Ms. MENG Jing / Ms. ZHAO Lin
Tel: (86 10) 6608 6765 / 6322 6596
Fax: (86 10) 6322 6888
E-mail: zqb@hpi.com.cn
Wonderful Sky Financial Group Limited
Wonderful Sky
Financial Group Limited
Ms. Iris OUYANG / Ms. Tiffany RUAN / Ms. Yan LI
Tel: (852) 2851 1038
Fax: (852) 2865 1638
Email: po@wsfg.hk / Tiffanyruan@wsfg.hk / yanli@wsfg.hk
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/huaneng-power-international-inc-acquires-equity-interests-of-power-generating-companies-from-huaneng-group-300345104.html
SOURCE Huaneng Power International, Inc.