SEP to Purchase 100 Percent Stake of SPIC Jiangsu Company for RMB 3bn

SPIC Jiangsu Electric Power Co., Ltd. (SPIC Jiangsu Company) and its affiliated renewable energy assets will be injected into the listed company.


SEP will acquire the 100 percent stake of SPIC Jiangsu Company from SPIC for around 2.955 billion RMB, the listed company announced on the evening of September 7.


According to the appraisal report issued by Shanghai Orient Appraisal Co., Ltd., the total equity value of SPIC Jiangsu Company was 3.011 billion RMB as of the base date of assets evaluation on August 31, 2016, which increased 619 million RMB or 25.87% compared with the book value of the owner's equity attributed to the parent company. Considering that SPIC Jiangsu Company distributed the past year profit of 55.95 million RMB to SPIC on December 8, 2016, the transaction price of the underlying asset will equal the evaluation value minus the above profit distribution amount, which will be 2.955 billion RMB.


SEP planned to purchase the underlying asset from SPIC through share issuance and cash payment, including 280 million RMB in cash payment, accounting for 9.48 percent of the total transaction value, and 2.675 billion RMB paid by share issuance, accounting 90.52 percent of the total transaction value.


SEP stated that the listed company will combine the existing business in Jiangsu province with SPIC Jiangsu Company along with the assets injection of SPIC Jiangsu Company andits affiliated renewable energy assets, which will help enhance SEP's competitiveness and going-concern ability and sustainable development capability, and thus produce a good synergy effect.

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