19 July, 2016
The Hong Kong office of international law firm Eversheds has advised Datang International Power Generation Co., Ltd (Datang Power) on the disposal of its coal-to-chemical business with net assets of RMB7,132 million (US$ 1 billion).
Datang Power is one of the largest state-owned power producers in the People’s Republic of China and is also one of a handful of Chinese companies to be triple listed in Hong Kong, Shanghai and London. The group is principally engaged in the construction and operation of power plants, the sale of electricity and thermal power, maintenance of power equipment and provision of power related technical services.
The Eversheds team was led by Stephen Mok, Head of Corporate, Asia. He was assisted by Consultant Viola Cheung, Associate Ian Tam and Trainee Henry Li. Stephen commented:
“Datang Power is a longstanding and valued Eversheds client. We are delighted to have advised on this cornerstone transaction. Our team worked tirelessly to deliver the deal in a tight timeframe, particularly given its size, market profile and complexity. As Datang’s sole Hong Kong legal adviser, we have previously acted for them on a number of significant M&A projects including the acquisition of a hydropower company and the disposal of desulfurisation & denitrification assets, together with a joint investment in a hydro-power company.”
The disposal is designed to optimise the company’s asset structure while increasing the focus on its principal business of power generation. The restructure comes at a time when regulations governing the Chinese power sector are undergoing dramatic changes, including official approval for direct trading between power generators and industrial and commercial users.
