Citibank: China Shenhua Energy (01088) acquires assets of the parent company to improve operational performance.

Citigroup released a research report stating that China Shenhua Energy (01088) recently announced the latest plan to acquire assets from its parent company, with the revised transaction excluding 100% equity of the e-commerce company. Overall, the total price of this transaction is approximately 133.6 billion RMB, with 30% to be paid through the issuance of consideration shares and the remaining 70% to be settled in cash. At the same time, the company plans to issue new A shares to no more than 35 specific investors, raising funds of no more than 20 billion RMB, all of which will be used for cash consideration and related expenses for this transaction. Citigroup believes that the plan will significantly improve China Shenhua Energy's operational performance. The bank also mentioned that the proposed valuation of this acquisition seems to be higher than the current valuation, and believes that most domestic investors will pay more attention to Shenhua's growth potential and dividend potential after the transaction. The bank has a target price of 45.1 Hong Kong dollars for China Shenhua Energy, with a rating of "Buy".