Companies

Investors to snap up stakes in Datang unit

By Fox Hu (China Daily)
Updated: 2010-12-03 10:27

Aluminum Corp of China Ltd will buy a $50 million stake in the IPO of China Datang Corp's wind-power unit in Hong Kong. [Photo/China Daily]

HONG KONG - Aluminum Corp of China Ltd and Angang New Co will each buy a $50 million stake in the initial public offering of China Datang Corp's wind-power unit in Hong Kong, according to a term sheet sent to investors on Thursday.

The companies are among key investors who will pay a combined $250 million for stock in China Datang Corp Renewable Power Co, the terms show. State Grid Corp of China and China Yangtze Power Co will also purchase $50 million stakes, the terms for the HK$6.8 billion ($875 million) IPO show.

Related readings:  Datang Int'l Power net profit up 29% in H1  China Potevio to merge with Datang  Datang International Power invests $576m in mainland's gas project  Datang Telecom planning PE fund

The Datang unit plans to set the price for its shares on Dec 10 and start trading on Dec 17. The sale will add to the record $49 billion raised in Hong Kong IPOs this year, according to data compiled by Bloomberg. The amount includes funds raised through the exercising of over-allotment options.

Aluminum Corp, the listed unit of China's biggest maker of the metal, will buy its shares through a Hong Kong unit.

Angang, formed in a merger this year between Anshan Iron & Steel Group and Pangang Group Co, will also make its purchase through a Hong Kong subsidiary. Liu Jingyuan, a spokesman for Anshan Iron & Steel, said he had no information regarding the investment.

China Longyuan Power Group Corp will buy a $30 million stake through a unit, the terms show.

China Everbright Ltd, Credit Suisse Group AG, JPMorgan Chase & Co, Macquarie Group Ltd and UBS AG are managing the IPO.

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