Shanghai Electric Group (601727.SH  02727.HK) has agreed to inject an equivalent of EUR31.022 million in RMB cash to Siemens Wind Power Turbines (Shanghai) Co., Ltd. (SWPT), a wholly-owned subsidiary of Siemens Ltd., China (Siemens). Siemens has also agreed to inject an equivalent of EUR34.104 million in RMB cash to SWPT.

After the cash contribution, Shanghai Electric ans Siemens will own 51% and 49% interests in SWPT respectively and SWPT will be renamed SmartPower Wind Turbines (Shanghai) Co., Ltd.

Moreover, Shanghai Electric and Siemens have agreed to contribute EUR53.043 million and EUR50.963 million respectively in cash to set up a JV company named Shanghai Electric Wind Energy Co. Ltd., which will engage in the business of selling wind-power equipment. The contributions are also in RMB.

With a registered capital of EUR104.006 million, the JV company will be held as to 51% by Shanghai Electric and 49% by Siemens.

As Siemens is a substantial shareholder of a non-wholly-owned subsidiary of Shanghai Electric, Siemens is a connected person of Shanghai Electric.