China Coal Energy to buy 100% stake in Shanxi Dongpo Coal

China Coal Energy Co Ltd<601898><1898>, the country's second largest coal producer, announced on Monday that it plans to acquire a 100% equity interest in China Coal Shanxi Dongpo Coal Co Ltd for RMB 1.33 billion (US$190 million), in a bid to tap the nation's rising energy demand, sources reported.

Shanxi Dongpo, with a registered capital of RMB 718.88 million, originally was a wholly-own subsidiary of China Coal Import & Export Co Ltd. Its total assets amounted to RMB 807.58 million ended Feb. 29, 2008 and total net assets hit RMB 13.31.

China Coal on Sunday reported that its profits in the first quarter this year went up by 36% to RMB 1.41 billion, and sales increased 39.4% to RMB 11.3 billion.