China Yangtze buys Three Gorges’ power plants for US$12billion
Three Gorges Jinshajiang Yunchuan Hydropower (Three Gorges Hydropower) has sold two major power plants to China Yangtze Power (China Yangtze), the world’s largest listed hydropower generator by capacity – China Yangtze runs the Three Gorges Dam hydropower station. Three Gorges Hydropower owned the Wudongde and Baihetan power plants in Southweast China, which has been sold for US$12 billion.
With this, China Yangtze will be acquiring the second and fourth-largest hydropower stations in China by capacity. The company said this would increase its total installed capacity to 71.8 million kilowatts from 45.6 million kilowatts (57%).
Trading in shares of China Yangtze Power was suspended this past December so that controlling shareholder China Three Gorges Corporation could draw up a plan to transfer the Wudongde and Baihetan stations.
Although the power plants deal was announced in December, the value of the transaction – billed as one of the largest in China’s hydropower sector in recent years – was only revealed last Thursday.
China Yangtze Power said it would pay for the power plants with cash and by issuing shares, with an estimated US$2.4 billion to be raised through private placement.
