China Shenhua Energy to Acquire Major Coal and Energy Assets, Plans A-Share Fundraising

An announcement from China Shenhua Energy Co ( (HK:1088) ) is now available.

China Shenhua Energy has signed an asset purchase agreement with its parent China Energy and subsidiary Western Energy to acquire a portfolio of energy and infrastructure assets, including full stakes in several coal, power, mining, shipping, trading and port companies, as well as partial interests in additional coal and energy entities, with consideration to be paid through a mix of newly issued A shares and cash; a later supplemental agreement removed the e-commerce subsidiary from the list of target assets and adjusted transaction terms. To support this major connected transaction, the company plans a private placement of new A shares to no more than 35 qualified investors, raising up to the full value of the A-share consideration and issuing no more than 30% of its post-transaction share capital, a move that will expand its asset base and capital structure while remaining subject to shareholder approval and Hong Kong Listing Rules for major transactions.

The most recent analyst rating on (HK:1088) stock is a Sell with a HK$29.60 price target. To see the full list of analyst forecasts on China Shenhua Energy Co stock, see the HK:1088 Stock Forecast page.

More about China Shenhua Energy Co

China Shenhua Energy Co. is a large integrated energy company based in the People’s Republic of China, engaged in coal production, power generation, and related transportation and trading businesses, with both A-share and H-share listings and a focus on coal, power and associated infrastructure assets across key energy regions.

Average Trading Volume: 12,955,165

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$858.2B

For a thorough assessment of 1088 stock, go to TipRanks’ Stock Analysis page.