Financial Advisory
Slaughterandmay
Full Credential Description
China Power International Development Limited faced a complex challenge in its asset restructuring process, particularly in the pre-restructuring phase. This involved the acquisition of 23 new energy companies by its subsidiary, Wu Ling Power Corporation, from connected persons for RMB1.23 billion. The restructuring was necessitated by the need to prepare for the proposed asset restructuring of State Power Investment Corporation Limited (SPIC), the controlling shareholder of China Power. This restructuring included the transfer of interests in Wu Ling Power and another subsidiary, Changzhou Hydropower, to SPICs subsidiary, Shanghai-listed SPIC Yuanda Environmental-Protection Co., Ltd., in exchange for new A-shares and cash. The tailored solution provided by Slaughter and May included advising on the intricate legal and regulatory requirements associated with these transactions. The pre-restructuring transactions were designed to integrate SPICs new energy assets, such as photovoltaic and wind power assets in Hunan province, into Wu Ling Power. This strategic move positioned Wu Ling Power as the main developer and operator of the new energy business in the region. As a result of these efforts, upon completion of the asset pre-restructuring and proposed asset restructuring, Wu Ling Power and Changzhou Hydropower will remain subsidiaries of China Power through its holding in Yuanda Environmental. This restructuring is expected to enhance China Powers operational capabilities in the new energy sector, aligning with its strategic development goals and reinforcing its position in the competitive energy market in Mainland China.