Source: Dfdaily.com Date:2016-05-12 Page view: 153
Link of original article: http://news.315.com.cn/20160512/100688657.html
Power China proposed to raise 12 billion Yuan via orientated capital increase for power investment, infrastructure investment projects and supplementing working capital.
On the evening of May 10, Power China published the program of orientated capital increase, which is proposed to issue less than 2.024 billion shares to not more than 10 investors by means of private offering not less than 5.93 Yuan/share (note: converted to 5.72% of market value); the total amount of the raised fund will be less than 12 billion Yuan.
According to the program, the shares issued by Power China will be subscribed in cash and the objects of issuance don’t include controlling shareholder, actual controllers and the affiliated persons under control. It’s predicted according to the issuance volume that after this issuance, the shareholding percentage of Power China in the listed company will drop from 77.32% to 67.40% and it is still the controlling shareholder of the company.
In terms of specific investment raising, Power China proposes to invest 1.23 billion Yuan of the raised fund into Nanou River Phase II (level I, level III, level IV and level VII) hydropower projects in Laos; 1 billion Yuan will be used in emergency coal power station in Kasim port in Pakistan; 170 million Yuan will be used in Phase I of Tianjin South Port Offshore Wind Plant; 150 million Yuan will be used in water supply BOT project (term I) in Yujia Industry Park in Yulin City, Shaanxi Province, 1 billion Yuan will be used in highway from Jiangjin, Chongqing to Xishui, Guizhou (in Chongqing); 1.3 billion Yuan will be used in BOT project of highway from Jinning, Yunnan to Hongta District; 3.55 billion Yuan will be used for BT project of east section project of line11 inurban metro in Wuhan City; 3.6 billion will be used as supplementary working capital.
Power China expressed that with fast development of businesses in the Company, the newly signed contracts and business revenues increase steadily and fast. The private offering will meet the demand of money for consistent development of the business, expand the main business of the company, improve the capability of sustainable development, decrease liability rate of the Company, optimize capital structure of the Company and improve financial state.
In recent years, the new contracts and business revenue of Power China have been increasing steadily and fast. In 2015, the amount of new contracts is as high as 327.795 billion Yuan, rising by 16.11% on year-on-year basis; from Jan. to March in 2016, the amount of new contracts is about 122.458 billion Yuan, rising by 89.43% on year-on-year basis; by the end of 2015, the stock of contracts is 628.518 billion Yuan. In 2013~2015, the revenue of principal businesses is respectively 163.531 billion Yuan, 189.941 billion Yuan, and 210.921 billion Yuan, with compound growth rate of 13.75%.
Power China expressed that construction, the industry of the company, is a money intensive industry; numerous investment is necessary in construction of project, project development and operation and preparation for project and the development period and investment return period are long. The company needs to store sufficient money to assure successful operation of the projects. In addition, to adapt to changes of contracting markets in China and abroad, the company has promoted innovations in operation mode and the scale of businesses contracted by mode of BT, BOT and PPP are increasing gradually; in these business modes, Power China serves as constructor and investor simultaneously, which needs strong capacity of money. With this private offering, the demand of money for development of the company’s business will be met and the principle businesses will be strengthened and enlarged.
