[Company] crown power Yantan acquired 3.64 billion shares七成resume trading today

5, Laurel Electricity (600236) in the suspension on a resume trading after, released at the same time, "Laurel, Guangxi Electric Power Company Limited of China Datang Corporation to purchase the assets of the issued shares暨关联交易plans" to be the use of non-public offering of shares and cash payments combination of the acquisition of the company held by the controlling shareholder of Datang Group Yantan 70 percent stake in the company, the target value of about 3.64 billion yuan.

Laurel Power shares on May 6 in the suspension, the suspension price of 9.39 yuan. The major asset reorganization is completed, will crown the power through the capital market financing, mergers and acquisitions to lay a solid foundation.

Yantan七成assets

According to the reorganization plan, crown the power to buy assets of the target Yantan 70 percent stake in the company and related rights and interests of shareholders. As the baseline assessment, the objective of the assets estimated value of approximately 3.64 billion yuan, crown power the use of non-public offering of shares and payment of a combination of cash payment transactions on the price: the use of non-public offering of shares to buy target assets means the amount of target assets of approximately one-third of the transfer price, is intended to 8.31 yuan / share (including the right of) the price of 148 million shares issued; used to pay cash to buy the assets of the target objectives of the amount of assets of about two-thirds of the transfer price of about 2427 million million.

Yantan a company's existing four Hydrogenerator 30.25 kilowatts Francis Group, with a total installed capacity of 1.21 million kilowatts, the annual average design capacity of 5.66 billion kwh, the company forecast Yantan acquisition value of approximately 5.2 billion. Thus measured, unit capacity investment cost is about 4298 yuan / kW, much lower than the units currently on the market installed capacity of hydropower assets acquired nearly million cost; also lower than before the acquisition of the Yangtze Three Gorges Electric Power Corporation, the costs of hydroelectric generating unit level (about 8532 yuan / kW).

Upon completion of the reorganization, crown of the total power installed capacity has been put into operation before the transaction will be 2,783,000 kilowatts (of which 2,013,000 kilowatts of hydropower) to 3.993 million kilowatts (of which 3,223,000 kilowatts of hydropower), an increase of 43.48 percent ratio; the interests of loading machine capacity by the transaction in front of 1,923,800 kilowatts (of which 1,461,800 kilowatts of hydropower) to 2,770,800 kilowatts (of which 2,308,800 kilowatts of hydropower), an increase of 44.03 percent ratio. This will help crown the power to increase, especially in southern China's Guangxi electricity market share and market competitive advantage.

Analysts said that the hydropower resources are not the monopoly of reproduction of resources, hydropower station operation margin usually more than 70%, and increase the number of years with the loan, the financial pressure to reduce costs, net profit will be rapid, with higher long-term investment value. Yantan company has been put into operation more than ten years, water and electricity more stable income-generating profits (the company in 2008 Yantan audited revenue and net profit of 29,401 million and 81,072 million), this restructuring will power the overall performance crown play a role in promoting the good.

There is still room for performance

The company said the assets of the company Yantan crown into electricity, the main business of power contribute to crown development and the improvement of financial situation; in this restructuring is completed, the power core crown to further enhance competitiveness, more optimistic about the prospects for future development.

Yantan current price for 0.1544 yuan / kWh, electricity and water only in Guangxi benchmark price 0.26 yuan / kilowatt-hour of 60%, the future price of a certain room. If the price increase Yantan crown power company's future profitability will be a significant contribution. With the Longtan since 2007 the company's water for power generation, Longtan Reservoir effective regulation over the years more and more obvious, as the company's downstream Longtan Power Station, Yantan the company's generating capacity will be increased gradually and stabilized at a higher level.

In addition, Yantan two companies are to build two 300,000 kilowatts expansion of hydropower generating units, the project was April 28, 2009 reported to the State Development and Reform Commission, National Energy Board for approval.

It is understood that the overall operation of the power crown this year will also change. 2008, by the use of generating units and coal-fired hours decreased the impact of high prices, a full-year loss of power plant fires about 4 billion, almost swallowed up all the water and electricity profits. With coal prices in 2009 fall, a crown fires power plant on the whole will significantly reduce the drag.

Company, Dahua Hydropower Station Extension Project Phase II was started in July 2007 the construction of the project total investment 680 million yuan, installed capacity of 110,000 kilowatts, is expected to an annual generation capacity of 1.53 billion kilowatts by the end of July 2009 plans electricity production, according to the current construction schedule, it is possible to put into operation by the end of June, the project will be put into operation to raise the crown of power generation capacity of hydropower and the level of profitability.

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