May. 3, 2012 (China Knowledge) - Gansu
Jingyuan Coal Industry & Electricity Power Co Ltd<000552
>, announced yesterday that it plans to acquire RMB 2.97 billion of coal and related assets from its largest shareholder Jingyuan Coal Industry Group.
The company said in a statement that it would buy the assets through a private placement, in which it plans to issue 181 million shares at RMB 16.36 apiece to Jingyuan Coal Industry Group.
Upon completion of the deal, Jingyuan Coal Industry Group will see its stake in the Shenzhen-listed
company rise to 73.8% from 47.11%. Meanwhile, Gansu
Jingyuan Coal Industry & Electricity Power will add 260 million metric tons of coal reserves and coal production capacity of 7.63 million metric tons per year.
In 2011, Gansu
Jingyuan Coal Industry & Electricity Power booked a net profit of RMB 70.81 million, 25.23% more than in 2010.