China Shenhua Energy (01088) plans to invest approximately 852.6 million yuan to acquire 100% equity of Hangjin Energy.

China Shenhua Energy (01088) announced that the company plans to sign a "Equity Transfer Agreement" with the National Energy Group Corporation, stipulating that based on the evaluated value of the shareholder's equity of Hangjin Energy as of the evaluation reference date (August 31, 2024), the National Energy Group Corporation will transfer 100% of its equity in Hangjin Energy to the company, with a transfer price of approximately RMB 852.6 million, which the company will pay with its own funds. It is reported that Hangjin Energy and its controlling subsidiaries own one coal mine under construction (Taranggaole Field), three operating coal mines (Yannan Mine, Zani River Open-pit Mine, Mindongyi Mine), and the Ewenke Power Plant's 2600MW coal-fired generating units. Among them, Mindongyi Mine and Ewenke Power Plant are integrated coal and power projects. This transaction is an important measure for the company and the National Energy Group Corporation to fulfill their commitment to avoiding competition in the same industry, which is conducive to further reducing industry competition. It is also a positive response to the capital market's support and encouragement for listed companies to enhance investment value through mergers and acquisitions. After the transaction is completed, China Shenhua Energy's coal production capacity will increase by a total of 25.7 million tons/year (including under construction capacity of 10 million tons/year), and the coal-fired generating unit installed capacity will increase by 1,200MW. After the Taranggaole Field reaches production in 2029, the target company's operating income and profitability will significantly increase. This transaction will better support China Shenhua Energy's positioning as the National Energy Group Corporation's coal business integration platform, increase the future supply of the company's coal resources in the Mengxi upstream area, enhance the company's energy supply capabilities in the Mengdong region, and strengthen the company's competitiveness in the Inner Mongolia region.