Citibank: China Shenhua (01088.HK) acquires assets of its parent company to help improve operational performance.

Zhitong Finance and Economics App learned that Citigroup released a research report stating that China Shenhua (01088.HK) recently announced the latest plan to purchase assets from its parent company, with the revised transaction excluding 100% equity of the e-commerce company. Overall, the total value of the 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 to pay the cash consideration for this transaction and related expenses. Citigroup believes that the plan will significantly improve China Shenhua's operational performance. The bank also mentioned that the proposed valuation of this acquisition seems to be higher than the current valuation, and most domestic investors are believed to be more concerned about Shenhua's growth potential and dividend potential after the transaction. The bank set a target price of 45.1 Hong Kong dollars and a rating of "buy".