Monday, 19 December 2011

Three Gorges to invest $269 million in China Power for renewables
12 Dec 2011

China Three Gorges Corp., operator of the nation's biggest dam, agreed to pay HK$2.1 billion ($269 million) for a 29.1% stake in renewable energy producer China Power International New Energy Development Co. (735) China Power International New Energy will issue 3.2 billion new shares at HK$0.65 each to China Three Gorges, the Hong Kong-listed company said in a statement to the city's stock exchange today. China Power International New Energy said it will use the proceeds to fund power generation projects.

China is pushing its companies to increase power generation from alternative sources including wind and hydropower as it seeks to cut reliance on coal and oil to reduce pollution. China Three Gorges, which operates the world's largest hydropower power dam, will become the biggest shareholder in China Power International New Energy. The purchase will create "opportunities for the company's further expansion through leveraging the hydropower power capabilities and expertise" of China Three Gorges, China Power International New Energy said in the statement.