By Saurabh Chaturvedi
CLP Holdings Ltd. (0002.HK) Wednesday said it has agreed to buy a 17% stake in Yangjiang Nuclear Power Co. Ltd, which operates a nuclear-power station in China's Guangdong province, from CGN Power Co. Ltd. (1816.HK) and its unit.
CLP bid HK$5.6 billion (US$722 million) for the stake in a public tender process, the company said in a stock-exchange filing. CLP will acquire a 12% stake from CGN Power and the remaining 5% from Guangdong Nuclear Investment Co., a unit of CGN Power.
The Hong Kong-based company expects to invest a total of HK$7.8 billion in Yangjiang Nuclear Power, including the deal price. The deal is expected to close in the first half of next year.
The power station comprises six units, with three operational and three under construction.
"The acquisition is an opportunity for the CLP Group to invest in cost-efficient, non-carbon emitting generation and further enhance our presence in Guangdong province," CLP said.
Write to Saurabh Chaturvedi at email@example.com
(END) Dow Jones Newswires
November 30, 2016 06:13 ET (11:13 GMT)
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