Summary by Moomoo AI
Shanghao Xin Energy announced on 5 January 2024 that its indirect wholly-owned subsidiary (buyer) had signed a cooperation agreement with the seller, the general contractor and the target company to acquire the entire shareholding of the target company and repay the target debt at a total cost of RMB8 billion. The target company is responsible for the development of 100 megawatt wind power generation and smart energy storage projects located in Shiqi County, Henan Province. Upon completion, the target company will become an indirect wholly-owned subsidiary of Yamagashi Energy. This acquisition constitutes a disclosable transaction pursuant to Chapter 14 of the Listing Rules. The cooperation agreement provides for a three-stage payment method and has operational conditions prior to completion. The Board considers that the acquisition is in line with the Company's development strategy, will help to expand its wind power business and is likely to generate positive earnings for the Group.