HPI to Acquire Equity Interest of Shenzhen Energy

May 27, 2003 by Jeff Shepard

Huaneng Power International Inc. (HPI, Hong Kong) announced that the investment agreement between the company, Shenzhen Energy Group Co. Ltd. (SEG) and Shenzhen Investment Holding Corp. (SIH) to acquire a 25% equity interest of SEG was approved.

Pursuant to the investment agreement signed earlier, HPI agreed to subscribe from SEG newly issued shares representing 10% of SEG's enlarged share capital, and to acquire existing shares held by SIH representing 15% of SEG's enlarged share capital at a total consideration of RMB2.39 billion. The procedures for the transfer of the equity interest and for amendment of the business registration records of SEG were completed May 22, 2003. After the closing of the transaction, HPI and SIH now hold 25% and 75% of the enlarged share capital of SEG, respectively, while generation capacity of HPI on an equity basis has increased by 417MW.