BEIJING, Dec. 28, 2000 (PRNewswire) Huaneng Power International, Inc. (NYSE: HNP; SEHK: 902) today announced that it has obtained all the necessary approvals from relevant Chinese authorities required for its merger by absorption of Shandong Huaneng Power Development Co., Ltd.
Shandong Huaneng will deregister in China as of December 31, 2000, at which time the “Agreement of Merger by Absorption” executed by Huaneng International and Shandong Huaneng on July 18, 2000 and shareholder approvals from both companies will come into effect formally. All assets, liabilities and accounts of Shandong Huaneng will be consolidated with those of the Huaneng Power beginning on January 1, 2001.
Regarding the completion of the merger, Li Xiaopeng, Chairman of Huaneng International, commented today in Beijing, “The completion of the merger in accordance with our timetable is made possible with the support of the relevant parties. We are thankful to regulatory bodies of both central government and Shandong provincial government for their strong support and timely approvals, and we are also thankful to the shareholders of both companies for their understanding and support.
“Meanwhile, we are also thankful to the intermediaries and the staff of Huaneng International and Shandong Huaneng for their joint efforts. I believe the acquired power plants will bring stable and increasing profitability to the company.”
With respect to Huaneng International’s future development, Li Xiaopeng said, “The merger enlarges the company’s asset base and geographical coverage, and strengthens its competitive position among independent power producers in China. Facing the forthcoming competition and challenges in the power market, the company will continue to seek new project development and acquisition opportunities while at the same time strengthening its management, in order to achieve continued, steadily increasing profits.”
Huaneng International has requested to delist and deregister Shandong Huaneng’s shares with NYSE and U.S. SEC. Huaneng International has also requested NYSE to make arrangements to cease the trading of Shandong Huaneng’s shares immediately after the deregistration of Shandong Huaneng in China takes effect on December 31, 2000.
To date, Huaneng International has settled in full the cash payment of the merger’s consideration to Shandong Huaneng’s domestic shareholders and its ADR depositary bank, Bank of New York. Huaneng International develops, constructs, operates and owns large-scale thermal power plants in China.
It will own and operate 10,813.5 MW of generating capacity and 1,320 MW of capacity under construction after the completion of the merger, covering seven provinces and municipalities in China’s economically developed coastal area. Huaneng International is the largest independent power producer in China.