Shanghai Electric Group Co, China's leading power equipment maker, said it would list on the Shanghai Stock Exchange tomorrow, after privatizing its previously locally-listed unit via a share swap.
The Hong Kong-listed company had issued 616 million yuan-denominated A shares at 4.78 yuan (69 US cents) each in exchange for shares of its 84-percent-owned unit Shanghai Power Transmission and Distribution Co, which delisted from the Shanghai bourse last month. Thus Shanghai Electric didn't raise money via the new listing.
Minority SPTD shareholders got 7.32 Shanghai Electric shares for each share they hold, or 28.05 yuan in cash.
"To return to A shares amid a weak market reflects the company's resolution in optimizing its structure and strengthening the core business," Shanghai Electric said in a statement yesterday.
The listing would create a platform for future fundraising and allow mainland investors to share the company's future growth, it said.
Shanghai Electric is involved in businesses ranging from power equipment, electromechanical equipment, transport equipment and environmental protection industries.
The company said all its business segments would benefit from the government's 4-trillion-yuan fiscal stimulus package announced last month.
The firm has been selected by Toronto-based CIC Energy Corp as the engineering and building contractor for a 1,320-megawatt power station in Botswana, a landlocked nation in south Africa, CIC revealed earlier this week.
Shanghai Electric shares closed 3.49 percent higher at HK$2.67 (34 US cents) in Hong Kong yesterday.
(Shanghai Daily December 4, 2008)
