H-share Huaneng Power International and eight investors are poised to move into the fast-growing Guangdong power market after expressing a strong interest in the state-owned Shenzhen Energy Group.
The investors, which include Hong Kong listed property firm Goldwiz Holdings, Electricity de France and mainland-backed China Resources Power, signed a non-legally binding letter of intent last week, pending a formal agreement.
The purchase, if realised, would allow the buyers instant access to 77 per cent of Shenzhen's power market.
With a total installed capacity of 3,080 megawatts, Shenzhen Energy controls several power plants, including Mawan General Power Plant, Shajiao B Power Plant, Nanshan Thermal Power Plant and Shenzhen West Power Plant. Shenzhen Energy also owns significant stakes in two A-share power firms.
According to a Goldwiz statement, the Shenzhen government's investment arm, Shenzhen Investment, is restructuring the shareholding of Shenzhen Energy.
It said the restructuring might involve the sale of Shenzhen Investment's interest in Shenzhen Energy and the issue of new Shenzhen Energy shares.
'The restructuring will be determined by the Shenzhen State-owned Assets Administration Office based on the asset valuation of Shenzhen Energy,' Goldwiz said.