China Power New Energy says to buy $209 mln assets

China Power New Energy Development Co. Ltd. (0735.HK: Quote, Profile , Research) said it would buy power assets in China from a substantial shareholder, China Power International New Energy, for HK$1.63 billion (US$209 million).

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 will also buy 90 percent of Gansu China Power, which operates a wind power generating business in Jiuquan City in Gansu Province, for HK$250 million, and a 56 percent 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 percent of the enlarged share capital, at HK$1.27 each.

For details please see http://main.ednews.hk/listedco/listconews/sehk/20070814/LTN20070 814380.pdf Shares of the company ended at HK$1.27 on Aug 2 prior to a trading suspension. Trading in the shares will remain suspended pending statement on a share sale. (US$1=HK$7.8)