13 Nov 2009 12:11

GD Power to buy stake in parent's power plants

Shanghai. November 13. INTERFAX-CHINA - GD Power Development Co. Ltd., the listed vehicle of China Guodian Corp. (Guodian), will spend RMB 4.96 billion ($726.21 million) to buy stakes in power plants owned by its parent company, GD Power announced on Nov. 13.

GD Power intends to purchase an 80 percent stake in Guodian Jiangsu Power Co. Ltd. from Guodian, one of China's five largest power generators, according to a company statement.

Jiangsu Power currently controls four thermal power plants with a combined installed capacity of 4.58 million kilowatts (kW). In 2008, the company generated 23.43 billion kilowatt hours (kWh) of electricity, of which 22.24 billion kWh were sold to the Jiangsu provincial power grid.

The deal will boost GD Power's aggregate power installed capacity and help the company get a stronger hold over Jiangsu's power generation market, the company said.

As of the end of the third quarter, GD Power's power plants had a combined installed capacity of 14.30 million kW. The deal will increase its installed capacity by 32.03 percent to 18.88 million kW.

GD Power's share price on the Shanghai Stock Exchange rose 0.38 percent to close at RMB 10.46 ($1.53) on Nov. 13, following the announcement of the deal.