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Denise Tsang

Power utility CLP Holdings has paid HK$14.4 million for 5.23 per cent of listing candidate Datasys Technology Holdings.

CLP said the investment would enable it to gain expertise in optimising power plant operations by adopting information technology solutions.

Datasys, which develops IT solutions for mainland power producers, including the near-monopoly State Power Corp, has used CLP's proceeds to retire debts.

Datasys will make its debut on the Growth Enterprise Market on August 16.

A CLP spokesman said: 'Datasys is an information technology solution provider that operates in the Chinese mainland and has a focus on the energy sector.

'CLP IT Solutions' minor investment in Datasys allows it to gain access to expertise in optimising power plant operations by making use of appropriate IT solutions.'

CLP's jointly owned power plants such as the Guohua Shenmu power plant and the Guangdong Daya Bay nuclear power plant deploy Datasys' IT solutions.

In June, CLP IT Solutions, a CLP group wholly-owned subsidiary, bought 41.86 million shares in Datasys at 34 HK cents per share.

Datasys said it had pledged CLP's proceeds to a bank for a new bank loan of 14 million yuan (about HK$13.1 million). The company then spent a large portion of the loan to repay a 15 million yuan loan.

CLP has promised not to dispose of any shares for 12 months after Datasys is listed.

CLP's entry cost represented a 10.52 per cent discount to Datasys' share offer price of 38 HK cents per share.

Datasys hopes to raise HK$65.36 million through placing 172 million new shares.

The listing will boost Datasys' budget in research and development and marketing of IT solutions, with HK$36 million of the proceeds earmarked for these purposes.

Datasys has been plagued by receivable problems.

Trade receivables due from three subsidiaries of State Power amounted to HK$31.7 million, which accounted for 61 per cent of Datasys' HK$55.5 million trade receivables as of December 31 last year.

With subsequent payments, the remaining receivables due from the three subsidiaries total HK$14.4 million.

Datasys said no provision was made on the receivables last year because the three subsidiaries promised to settle the matter by the end of this month.

For the 12 months to last December, Datasys' net profit rocketed to HK$20.11 million from HK$7.83 million the year before.



CLP seeks to boost IT expertise with stake in Datasys