China Electric Power (02380) plans to sell 24.8726% of Qiyuanxin Power's shares

According to the Zhitong Finance App, China Electric Power (02380) announced that the company plans to sell all 24.8726% of its shares in Qiyuanxin Power (an associated company of the company). Since the company is a state-owned enterprise, according to Chinese laws and regulations governing the transfer of state-owned property rights, the underlying shares to be transferred must be publicly listed through the Shanghai Property Exchange (an approved equity exchange). The reserve listing price is RMB 2,556 billion.

The potential sale will enable the Group to further focus on its core business and support its strategy to develop integrated clean energy platforms covering thermal power, hydropower, wind power and photovoltaic power generation. Furthermore, the listed reserve price of the underlying shares has an ideal premium over its book value, thus providing the company with an opportunity to monetize its investment value in Qiyuan Power. Once the potential sale is completed, the proceeds are expected to strengthen the Group's capital structure, improve its cash flow position, and support the creation of long-term value for shareholders.

As of the date of this announcement, the Company has not entered into any binding agreement, arrangement or commitment with respect to the potential sale. Since the potential sale may or may not take place, shareholders and potential investors of the company must act carefully when trading the company's shares.