Herbert Smith Freehills advises Huaneng Power on US$1.19 billion acquisition of Chinese power plants

Herbert Smith Freehills has advised Huaneng Power International Inc., one of China’s largest listed power producers, on its acquisition of equity interests in ten power plants in China for a total consideration of US$1.19 billion.

Beijing-based Huaneng Power is the listed unit of the mainland’s largest power producer, China Huaneng Group. The company is mainly engaged in developing, constructing, operating and managing large-scale power plants throughout China.

Subject to shareholder approval, Huaneng Power will acquire from Huaneng Group: 91.8% of Huaneng Hainan Power Inc.; 75% of Huaneng Wuhan Power Generation Co., Ltd.; 53.45% of Huaneng Suzhou Thermal Power Co, Ltd.; 97% of Enshi Qingjiang Dalongtan Hydropower Development Co., Ltd.; and 100% of Huaneng Hualiangting Hydropower Co,. Ltd.

The company will also acquire from Huaneng International Power Development Corporation (HIPDC): 60% of Huaneng Chaohu Power Generation Co., Ltd.; 100% of Huaneng Ruijin Power Generation Co., Ltd.; 100% of Huaneng Anyuan Power Generation Co., Ltd.; 100% of Huaneng Jingmen Thermal Power Co., Ltd.; and 100% of Huaneng Yingcheng Thermal Power Co., Ltd.

Haiwen & Partners acted as PRC counsel to Huaneng Power and CICC was the company’s financial adviser.

The Herbert Smith Freehills team was led by Beijing Office Head Tom Chau. Tom was supported by senior associate Sherry Lai and associates Lawrence Wang and Isaac Chen.

Tom Chau commented:

“We were very pleased to assist our long standing client Huaneng Group with this large and important transaction, which will significantly bolster the company’s installed capacity and enhance its ability to deliver conventional and renewable energy.”

Recently, Herbert Smith Freehills advised Huaneng Power on its HK$3.14 billion H-share placement. The firm has previously advised Huaneng Power on a number of other matters including the company’s RMB1.5 billion Regulation S offering of three-year fixed rate bonds due 2016 on the Hong Kong Stock Exchange, and its non-public issue of RMB8.556 billion A-shares and HK$1.988 billion H-shares.


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