Thermal power producer Shanghai Electric Power (600021) plans to raise up to 9.5 billion yuan through a private placement of a maximum of 1.83 billion shares at 5.21 yuan per share in order to purchase nuclear assets from its parent, China Power Investment Corporation (CPIC), reports yicai.com, citing a company filing.

Nine billion yuan of the total funds raised will be used to fully acquire Hexi Energy Investment. The remaining 500 million yuan will be used to boost working capital.

CPIC will subscribe to the private placement with a minimum of 2.5 billion yuan in cash.

Hexi Energy Investment owns a 30 percent stake in CNNC Jiangsu Nuclear Power Corporation, a 20 percent stake in the third phase of the Qinshan Nuclear Power Station, and a six percent stake in the second phase of Qinshan Station.

After the completion of the deal, Shanghai Power will possess both thermal power and nuclear power generation assets.

Shares of Shanghai Electric Power were suspended from trading since May 31 due to the planning of this private placement.