China Power New Energy (00735.HK) said that it has agreed to buy from Zhe Jiang Ouneng Electric Power Group Stock Co., Ltd (Ouneng Power Group) the entire issued share capital in Chongqing Meixi River Hydropower Development Company Limited (Meixi Hydropower Company) for RMB348 million.

As of 31 October 2011, Meixi Hydropower Company owed Ouneng Power Group RMB133.175 million shareholder's loan. Meixi Hydropower Company will repay the loan within 5 working days from the date when China Power New Energy has taken over the management of Meixi Hydropower Company.

Meixi Hydropower Company is a limited company incorporated in the PRC. It is principally engaged in operation of hydropower plants in the PRC. It holds 100% equity interests in Chongqing City Meixi River Du Kou Ba Hydro Power. It will have 2 hydro power generating units, each with a unit capacity of 64.5MW and a total installed capacity of 129MW. Construction is currently underway.