China Power New Energy Development said it would buy power assets in the mainland from a substantial shareholder, China Power International New Energy, for HK$1.63 billion.

The renewable energy firm said in a statement late on Tuesday that it would buy CPI (Fujian) Power, which operates a hydroelectric power generating plant in Fujian Shaxikou, for HK$1.23 billion.

The company would also buy 90 per cent of Gansu China Power, which operates a wind power generating business in Jiuquan City in Gansu Province, for HK$250 million, and a 56 per cent stake in Tianhan Development, a wind power generating business operator in Shanghai, for HK$150 million.

The Hong Kong-listed firm said the purchase will be settled by an issue of convertible note which is convertible into about 1.28 billion new shares, or 22.31 per cent of the enlarged share capital, at HK$1.27 each.

Shares of the company ended at HK$1.27 on August 2 prior to a trading suspension. Trading in the shares will remain suspended pending statement on a share sale.