On February 21, Huaihe Energy (Group) Co.Ltd(600575) (600575. SH) announced the plan for absorbing and merging Huainan Mining (Group) Co., Ltd. and related party transactions. The listed company plans to absorb and merge Huainan mining by issuing shares, convertible corporate bonds (if any) and paying cash to nine companies including Huaihe holdings, China Cinda and CCB investment. This transaction is expected to constitute a major asset restructuring.
According to the plan, after the completion of the transaction, Huaihe Energy (Group) Co.Ltd(600575) as the surviving company inherits and undertakes all the assets, liabilities, business, personnel and all other rights and obligations of Huainan mining, the legal personality of Huainan mining will be cancelled, the company shares held by Huainan mining will be cancelled, Huaihe Holdings, China Cinda CCB investment and other companies will become shareholders of the company after this transaction. The exercise price of the cash option in this transaction is 2.35 yuan / share, which is 90% of the closing price of the shares of the listed company on the trading day before the pricing benchmark date.
It is reported that Huaihe Energy (Group) Co.Ltd(600575) is mainly engaged in thermal power generation, power sales, railway transportation and coal trade. Relying on Huainan mining area, Huainan mining is located in one of the 14 100 million ton coal bases and six large-scale coal power bases in China. It has become a comprehensive energy group focusing on coal, electricity and gas. It is also the largest enterprise in coal and power production in Anhui Province. After the completion of the transaction, Huainan Mining’s coal, power and natural gas related businesses will be listed as a whole.
For Huaihe Energy (Group) Co.Ltd(600575) , first of all, this transaction is conducive to greatly improving the company’s asset scale and profitability, making the company a large comprehensive energy group and significantly enhancing the company’s comprehensive strength; Secondly, this transaction will help eliminate the potential horizontal competition between Huainan Mining and its non listed subsidiaries and listed companies, reduce related party transactions with listed companies, further promote the standardized operation of listed companies, and effectively protect the legitimate rights and interests of listed companies and minority shareholders; Finally, this transaction is also conducive to give play to the synergy between the two sides in business and realize the complementary advantages of listed companies and Huainan mining.
At present, under the policy background of deepening the reform of state-owned enterprises, Huainan mining, as a state-owned enterprise subordinate to Anhui SASAC, has actively promoted the reform of mixed ownership and made substantial progress. This transaction is also a positive practice of Huainan Mining for the strategic deployment of state-owned enterprise reform, which is conducive to improving the allocation and operation efficiency of state-owned capital, promoting enterprise reform and innovation, enhancing the core competitiveness of enterprises, and realizing the excellence and strength of state-owned capital.
Under the background of promoting the adjustment, transformation and upgrading of coal industrial structure, improving the quality of energy development and enhancing the comprehensive competitiveness of coal enterprises, Huainan mining is also expected to strategically deploy the intelligent upgrading and lean management of large coal mines by relying on the capital market, and promote and deepen the advanced industrial development model of coal power integration, Enhance the comprehensive strength and core competitiveness of the group’s coal and electricity business, and form a virtuous circle development pattern of “industrial integration”.
