September 5 -- Sichuan Guangan AAA Public, a company involved in the power generation and supply, and tap water production and supply businesses, plans to issue up to 110 million shares in a private placement in order to acquire a 90 percent interest in Fuyuan Energy Development, and for the construction of a 110-kilowatts transmission station, reports stcn.com, citing a company filing.

Excluding issuance fees, the above two transactions will respectively account for 714 million yuan and 33 million yuan of the raised funds.

The major assets of Fuyuan Energy Development are two hydropower stations, with installed capacity of 200 megawatts and 10 megawatts.

According to the company, the two hydropower stations have low operating costs, and will provide long-term returns.

The company is expecting an increase in the price of hydropower as the country is aiming to achieve the same price levels for hydropower and thermal power.

Sichuan Guangan said the acquisitions will improve the company's hydopower installed capacity from 273 megawatts to 483 megawatts.

Source:capitalvue