Huadian Power sells Ningxia stake to Chalco for USD 218m

Jan 2, 2013 - Chinese firm Huadian Power International Corp (HKG:1071) said Sunday it had signed an agreement to sell its stake in Ningxia Group to Aluminum Corporation of China (SHA:601600), or Chalco, for CNY 1.36 billion (USD 218m/EUR 165m) in cash.

The stake in Ningxia, which is engaged in coal-fired, solar and wind power generation, that Huadian Power sold to Chalco exceeds 25%.

The public tender for the sale of the stake in majority state-owned Ningxia was first announced on November 30, 2012.

Huadian Power plans to use the net proceeds from the sale as working capital.

Under the terms of the deal, Chalco agreed to make the first payment equal to 40% of the total consideration on the same date of the signing of the agreement, while the remaining 60% will be paid within two months after the signing of the deal.

(CNY 1 = USD 0.160/EUR 0.122)

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