<div id="readability-page-1"><div id="news-body">(Yicai) June 4 -- Shares of Yankuang Energy Group rose after the leading Chinese mining firm said it plans to spend over CNY16.4 billion (USD2.4 billion) in cash to acquire core assets from its controlling shareholder to accelerate its transformation from a traditional coal producer to a comprehensive energy service provider.Yankuang Energy [SHA: 600188] jumped 3.4 percent to CNY26.86 (USD3.97) a share as of 11.05 a.m. in Shanghai today after closing 8.8 percent higher yesterday. Its Hong Kong-traded stock [HKG: 1171] fell 1.6 percent to HKD15.47 (USD1.97).Yankuang Energy has signed a deal with Shandong Energy Group and relevant affiliated parties to fully acquire Shandong Energy New Energy Group for CNY15.6 billion and Shandong Energy Power Sales for CNY845 million (USD124.8 million), it announced late yesterday. The move will also promote the coordinated development between its core coal mining business and thermal power assets, most of which are newly acquired.The takeover will enable Yankuang Energy to build a full supply chain covering power generation, wholesale, and end-user consumption. The integrated operation model linking coal production, power generation, and electricity sales consolidates the Jining-based firm's full-chain competitive edges and lifts its overall earnings and competitiveness.Shandong Energy New Energy and its subsidiaries generated 22.9 billion kilowatt-hours of electricity last year, consisting of 18.75 billion kWh from thermal power, 3.89 billion kWh from wind power, and 0.26 billion kWh from solar power. It also has multiple thermal and wind power projects under construction, while also having approvals to build wind and photovoltaic installations.Shandong Energy New Energy and its affiliates boasted a commercial installed capacity of 7,052 megawatts as of Jan. 31. Combined with not yet commissioned capacity of 1,750 MW and another 1,884 MW of projects under construction, Yankuang Energy will acquire a total 10,686 MW of installed capacity, the buyer pointed out.Shandong Energy Power holds nationwide electricity retail licenses, Yankuang Energy said, noting that beyond the sales business, the target also controls one distributed solar power producer and a thermal power project.Shandong Energy New Energy logged a net profit of CNY959 million last year on revenue of CNY7.7 billion (USD1.1 billion). Shandong Energy Power posted a net loss of CNY12.6 million (USD1.8 million), but excluding non-recurring gains and losses, it saw a profit of CNY14.5 million. Its revenue was CNY48 million.The deal will eliminate existing horizontal competition in the power segment between Yankuang Energy and its parent firm. The newly acquired thermal power assets will help counter cyclical swings inherent to the coal sector and strengthen overall profitability and risk resilience, while the renewable power assets will facilitate the company's low-carbon and green energy transition.Editor: Martin Kadiev</div></div>

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Yankuang Energy shares rose after announcing a USD2.4 billion cash acquisition of core assets from controlling shareholder Shandong Energy Group. The deal aims to accelerate its transition from a coal producer to an integrated energy service provider by acquiring thermal, wind, and solar power assets. This move consolidates Yankuang's full supply chain, eliminates horizontal competition with its parent company, and enhances profitability and green energy capabilities.

China's Yankuang Jumps on USD2.4 Billion Acquisition Plan to Speed Integrated Energy Service Provider Transition