Slaughter and May is advising China Power International Development Limited on its Asset Restructuring

Slaughter and May is advising China Power International Development Limited (“China Power”) on its asset restructuring, the pre-restructuring stage of which involves acquisitions by its subsidiary Wu Ling Power Corporation (“Wu Ling Power”) of 23 new energy companies from China Power’s connected persons for RMB1.23 billion, as well as formation of joint ventures and various other acquisition and intragroup restructuring of Wu Ling Power and SPIC Guangxi Changzhou Hydropower Development Co., Ltd. (“Changzhou Hydropower”), another subsidiary of China Power. 

These pre-restructuring transactions are entered into in preparation of the proposed asset restructuring of State Power Investment Corporation Limited (“SPIC”), the controlling shareholder of China Power, which involves China Power’s transfer of its interests in Wu Ling Power and Changzhou Hydropower to SPIC’s subsidiary, Shanghai-listed SPIC Yuanda Environmental-Protection Co., Ltd. (“Yuanda Environmental”) in consideration of new A-shares to be issued by Yuanda and cash. Upon completion of the asset pre-restructuring and proposed asset restructuring, Wu Ling Power and Changzhou Hydropower will continue to be subsidiaries of China Power through its holding in Yuanda Environmental which will itself become a subsidiary of China Power. 

Through the implementation of the pre-restructuring, new energy assets of SPIC such as photovoltaic and wind power assets in Hunan province will be integrated into Wu Ling Power, which will be the main developer and operator of the new energy business in the Hunan province. 

China Power is a longstanding client of Slaughter and May which has been advising on its corporate finance transactions, including its acquisitions of Wu Ling Power and of clean energy assets in 2022 and 2023 and equity and debt capital market transactions, as well as compliance matters. 

China Power group is principally engaged in the generation and sale of electricity in Mainland China, including investment, development, operation and management of hydropower, wind power, photovoltaic power and coal-fired power plants; and provision of energy storage, green power transportation, and integrated intelligent energy solution services. Its businesses are located in the major power grid regions of China. Its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited. 

Lead partner Benita Yu comments: “We are honoured to be advising China Power on another landmark transaction which plays an important part in its strategic development in the new energy sector, and will continue to assist China Power in navigating the complex legal and regulatory requirements so as to achieve the successful completion of the deal.”