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China Shenhua Energy Co ( (HK:1088) ) has provided an announcement.
China Shenhua Energy has announced that its controlling shareholder, China Energy, has issued impairment compensation undertakings covering two exploration mining rights associated with Pingzhuang Coal, in connection with a previously announced asset acquisition funded by a mix of A-share issuance and cash. Under the new arrangements, China Energy will compensate China Shenhua for any impairment in the value of the Western Exploration Mining Right and the Heidaigou Exploration Mining Right over the financial year in which the transaction completes and the following two years, with impairment tested annually against the original transaction consideration and appraised values. The Western Exploration Mining Right, held via an indirect wholly owned subsidiary of Pingzhuang Coal, carries a book and transaction value of RMB81.5926 million, and the compensation formula adjusts for factors such as changes in capital structure, profit distributions and normal time-based value decreases. The move is designed to further safeguard the interests of China Shenhua and its shareholders by shifting the risk of value erosion in these exploration assets onto China Energy during the defined compensation period.
The most recent analyst rating on (HK:1088) stock is a Buy with a HK$48.00 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 Company Limited is a major integrated energy company in China, primarily engaged in coal production, power generation, railway and port transportation, and coal chemical operations. Listed in Hong Kong, the group focuses on leveraging its coal resources and related infrastructure to serve domestic energy and industrial demand, while operating within the broader China Energy group structure.
Average Trading Volume: 11,632,236
Technical Sentiment Signal: Buy
Current Market Cap: HK$913.4B
See more data about 1088 stock on TipRanks’ Stock Analysis page.