(May 27, 2009) SHANGHAI, China (PennWell) China’s Yangtze Power Co., operator of 22,400-MW Three Gorges Dam, is carrying out a 107.5 billion renminbi (US$15.76 billion) restructuring plan that includes acquiring full ownership of the project’s 26 operating units, totaling 18,200 MW.
Yangtze Power said it would issue 1.55 billion shares to its parent, China Three Gorges Project Corp., in a private placement for 12.89 renminbi (US$1.88) each, raising 20 billion renminbi (US$2.9 billion), and pay 37.5 billion renminbi (US$5.5 billion) in cash to acquire assets from China Three Gorges. It also is to take on 50 billion renminbi (US$7.3 billion) in debt.
The assets being acquired include the remaining 18 generating units of the original 26-unit Three Gorges project that Yangtze Power does not already own. (HydroWorld 9/9/08) The acquisition is to more than double Yangtze Power’s installed capacity and is to increase its 2009 net profit to 6.3 billion renminbi (US$922 million) from last year’s 3.93 billion renminbi (US$575 million).
The announcement to the Shanghai stock exchange spurred Yangtze Power’s stocks to increase the 10 percent daily limit May 18, following a one-year suspension of its trading while the restructuring was pending.
The plan for Three Gorges originally called for 26 generators, 14 on the left bank of the Yangtze River and 12 on the right for a total of 18,200 MW. The project has since been expanded further, with another six turbines being added by 2012 for a total of 22,400 MW.
Hydroworld.com, May 27, 2010