Mengdian Power Gets Approval For Private Placement


Inner Mongolia Mengdian Huaneng Thermal Power Corporation (600863) said it obtained the approval of the State Council for its private placement of 600 million shares, reports, citing a company filing.

According to the filing, the issue price of the private placement was reduced from 9.17 yuan per share to 7.76 yuan per share.

Mengdian Power plans to raise up to 5.887 billion yuan from the private placement, of which 4.08 billion yuan will be spent on the purchase of an 88 percent stake in North Weijiamao Coal Power, 1.21 billion yuan will be used to fully acquire Inner Mongolia Juda power, and 500 million yuan will be invested in the building of power stations.

Mengdian Power, a listed subsidiary of China Huaneng Group, recorded first half 2011 net profit of 513 million yuan, down 10 percent year-on-year.

The company's parent, North United Power Corporation, a subsidiary of Huaneng Group, had committed to inject all its coal power-related assets into Mengdian Power over the next five years.

In addition, it will support Mengdian Power in the development and investment of power generation projects.


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