Perennial Energy to Acquire 51% Stake in Guizhou Coking Coal Miner via Asset Injection

Perennial Energy Holdings Ltd. ( (HK:2798) ) just unveiled an update.

Perennial Energy Holdings has agreed, via its indirect wholly owned subsidiary Jiutai Bangda, to inject RMB114.49 million of registered capital into a target company in exchange for a 51% equity stake, to be settled through the transfer of mining rights and related assets of the Xiejiahegou Coal Mine. Following completion and registration, the target company, which owns the Youyi and Jieji coking coal mines in Guizhou, will become a subsidiary of Perennial Energy, allowing consolidation of Xiejiahegou and Youyi coal resources and continued use of Xiejiahegou’s existing approved production scale, facilities and equipment. The transaction qualifies as a major transaction under Hong Kong Listing Rules and is subject to shareholders’ approval—potentially by written consent from majority shareholder Spring Snow—and other conditions precedent, with the company set to issue a detailed circular including financial and technical reports to shareholders within 15 business days.

The most recent analyst rating on (HK:2798) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Perennial Energy Holdings Ltd. stock, see the HK:2798 Stock Forecast page.

More about Perennial Energy Holdings Ltd.

Perennial Energy Holdings Limited, through its subsidiaries, operates in the coal mining sector, focusing on the exploration, development and production of coking coal in China. Its assets include underground coal mines such as Xiejiahegou Coal Mine in addition to targeted interests in Youyi and Jieji coking coal mines in Panzhou City, Guizhou Province, positioning the group within the metallurgical coal supply chain.

Average Trading Volume: 1,660,636

Technical Sentiment Signal: Buy

Current Market Cap: HK$1.78B

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