Shenzhen Energy Plans to Buy Electricity Producer From Parent

By Jiang Jianguo

Aug. 18 (Bloomberg) -- Shenzhen Energy Group Co., the utility partly owned by Huaneng Power International Inc., may acquire Shenzhen Nanshan Power Co. from its parent company to expand electricity production in the southern Chinese city.

Shenzhen Energy didn't say how much it would pay for Shenzhen Nanshan in a statement to the city's stock exchange late yesterday. The companies are units of Shenzhen Energy Group Corp.

Shenzhen Nanshan's shares will be suspended from trading from today until no later than Sept. 2, a separate statement shows. Shenzhen Nanshan was valued at about 2.5 billion yuan ($364 million) at the market's Aug. 15 close. Shenzhen Energy shares gained for a fifth day, advancing 0.8 percent to 7.77 yuan at 10 a.m. local time.

Hong Kong-listed Huaneng Power, China's largest power producer, last year paid 1.52 billion yuan for a 9.08 percent stake in Shenzhen Energy, formerly called Shenzhen Energy Investment Co., to become the second-largest shareholder.

To contact the reporter on this story: Jiang Jianguo in Shanghai at jjiang@bloomberg.net