China Electric Power (02380) and Guangxi Company signed separate restructuring framework agreements with Yuanda Environmental Protection to follow up on asset restructuring proposals

According to Zhitong Finance App, China Electric Power (02380) issued an announcement. On October 18, 2024, the company and Guangxi Company (a wholly-owned subsidiary of the company) and Yuanda Environmental Protection entered into separate restructuring framework agreement I and restructuring framework agreement II to follow up on asset restructuring proposals.

After the completion of this asset restructuring proposal, it is expected that the Group will acquire the controlling shares of Yuanda Environmental Protection, and that the direct controlling shareholder of Yuanda Environmental Protection will change from China Power Investment to the company. It is expected that the ultimate controlling shareholder of Yuanda Environmental Protection will remain (through the company) China Power Investment. Furthermore, it is expected that Wuling Electric Power and Cheung Chau Hydropower will continue to be subsidiaries of the company (it is expected that the company's future shares in Yuanda Environmental Protection and/or voting arrangements with other Yuanda Environmental shareholders and/or other arrangements that will allow Wuling Electric Power and Cheung Chau Hydropower accounts to be merged into the Group).

Wuling Electric Power and Cheung Chau Hydropower will make pre-restructuring proposals before implementing the asset restructuring proposal.

The asset restructuring proposal will further establish the company as China Power Investment's comprehensive clean energy flagship platform, establish a favorable capital structure, open up capital markets between the two places, promote deep integration of asset management and capital operations, achieve resource coordination, improve management efficiency, and clarify competitive relationships among peers, thereby expanding the company's business development potential.

The asset restructuring proposal will push China Power Investment's high-quality projects into the group, accelerate the achievement of the company's strategic goals, enhance core competitiveness, and continue to enhance the long-term interests of all shareholders.