Shenhua Energy to offer shares in Shanghai
(Shanghai Daily) Updated: 2007-07-03 13:01
China Shenhua Energy Co said today that it plans to issue
shares on the Shanghai Stock Exchange and to increase its holdings of parent
company assets, according to The Associated Press.
The company, whose
shares are traded in Hong Kong, said in a regulatory notice that it would issue
up to 1.8 billion shares denominated in yuan, and use proceeds from the Shanghai
offering to improve the company's operations and to buy assets from its
state-owned parent, Shenhua Group Corp.
The money would also be used to
buy overseas assets, said the notice, posted on the Website of the Hong Kong
Stock Exchange.
The Shanghai initial public offering is subject to
regulatory and shareholders' approval. Pricing would depend on market
conditions, it said, so the amount of funds to be raised was not specified.
However,
the notice said Shenhua Energy, the country's biggest coal producer, proposed to
spend 3.33 billion yuan (US$437 million) buying parent company coal and power
assets.
In a separate statement, Shenhua said it has agreed to buy from
its parent group 100 percent of Shenhua Group Shenfu Dongsheng Coal Co and
Shenhua Shendong Power Co.
Shenhua Group, formed in 1996 from the merger
of regional coal mines in Inner Mongolia, reported sales of 240 million tons of
coal in 2006 and forecasts sales this year of between 260 million tons and 270
million tons. (For more biz stories, please visit Industry Updates)
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