China Shenhua plans to acquire parent company assets for a total price of 133.6 billion RMB and intends to issue A-shares to raise 2 million RMB

China Shenhua (01088.HK) announced that it has entered into a supplementary agreement with its controlling shareholder, China Energy Group, which, after revision, excludes the 100% equity of the e-commerce company from the transaction. Overall, the total price of this transaction is RMB 133.599 billion, with 30% to be paid through the issuance of consideration shares and the remaining 70% settled in cash. At the same time, the company plans to issue new A shares to no more than 35 specific investors, raising no more than RMB 20 billion, all of which will be used to pay for the cash consideration and related expenses of this transaction. This transaction is not contingent upon the implementation of the proposed issuance of A shares.

Among them, the company will acquire 100% equity of Guoyuan Power, 100% of Xinjiang Energy, 100% of the chemical company, 100% of Wuhai Energy, 100% of Pingzhuang Coal Industry, 41% of Shenyuan Coal, 49% of Jinshen Energy, 100% of Baotou Mining, 100% of the shipping company, 100% of the coal sales company, and 100% of the port company from China Energy Group, paying RMB 40.08 billion through the issuance of consideration shares and RMB 85.791 billion in cash; and for the acquisition of 100% equity of Inner Mongolia Jian Investment held by Western Energy, RMB 7.728 billion will be paid in cash.

Upon completion of this transaction, the company's business scale will significantly expand, with substantial growth in coal recoverable reserves and coal production, and the layout of high-quality coal resources nationwide will be further improved. At the same time, through the integration of high-quality resource bases and related supporting assets, the company's integrated operational advantages will be further enhanced, and the scale of its main business will continue to expand