On April 10, Gansu Jingyuan Coal Industry And Electricity Power Co.Ltd(000552) disclosed that the company was planning to issue shares to purchase assets, issue shares to purchase 100% equity of Yaojie Coal Power Group Co., Ltd. (hereinafter referred to as “Yaomei group”) held by energy and chemical group, China Cinda and China Huarong, and raise funds through non-public Development Bank shares.
Among them, Nenghua group is the indirect controlling shareholder of the company, which constitutes related party transactions. In 2017, Gansu Province established energy and chemical group and initiated the integration of three major state-owned coal enterprise groups in the province, including Jingmei group, Yaojie Coal Power and Gansu coal investment, and obtained 100% equity of Gansu Jingyuan Coal Industry And Electricity Power Co.Ltd(000552) controlling shareholder Jingmei group and 51% equity of Gansu coal investment, thus becoming the indirect controlling shareholder of the company and 75.38% equity of Yaomei group, the third largest coal enterprise in Gansu Province.
Yaomei group is a large state-owned coal energy enterprise established by the overall restructuring and reorganization of Yaojie mining bureau, which was founded in August 1958. At present, the comprehensive development pattern of “three major industries” of coal, circular economy and non coal and the “six pillars” of coal, electric power, chemical industry, smelting, building materials and logistics have been formed.
Since the main businesses are coal businesses, Nenghua group promised in the acquisition report signed in January 2018 to integrate other enterprises under its control with the same and similar businesses operated by listed companies through asset injection, asset transfer, closure or suspension of relevant businesses, divestiture and other means within five years, so as to eliminate horizontal competition.
According to the Research Report of Kaiyuan securities, Yaojie group has four mines with a total approved production capacity of 5.7 million tons. If the asset injection is completed in the future, it will contribute 54% of the production capacity increment.
Gansu Jingyuan Coal Industry And Electricity Power Co.Ltd(000552) said that the company expects to disclose the trading plan within no more than 10 trading days. In order to safeguard the interests of investors and avoid significant impact on the company’s securities trading, the trading of the company’s shares and convertible bonds will be suspended from the opening of the market on April 11.
