The group eyes spin-off of Tianhe New Energy Equipment and its listing on the Main Board of the Stock Exchange of Hong Kong to enhance transparency.
China WindPower Group Limited (“China WindPower”) an integrated wind power company in China, on Monday announced a reorganisation whereby Tianhe New Energy Equipment Limited (“Tianhe”) is to become the holding company of the Group’s wind power tower tube equipment manufacturing business. Tianhe also plans to gradually expand into solar-energy related equipment manufacturing business. Besides, Tianhe has already submitted a listing application form (Form A1) to the Stock Exchange of Hong Kong for the listing of, and permission to trade, Tianhe shares on the Main Board of the Stock Exchange on Monday.
China WindPower is an integrated wind power company. Its principal businesses include (1) wind farm investment; (2) wind power consultancy and design services; (3) wind power engineering and construction services; (4) wind farm operation and maintenance services and (5) wind power tower tube equipment manufacturing. Following the completion of the proposed spin-off, Tianhe would be primarily engaged in wind power tower tube manufacturing business while the Group would continue to engage in the other four businesses, according to a China Windpower report.
Mr Liu Shunxing, Chairman of China WindPower, said, “The spin-off and listing of Tianhe match the long-term goals of the Group as a wind farm operator and investor. This move enables the Group to focus more on our core businesses and more effectively allocate financial resources. Moreover, it separates the Group’s key wind farm investment and its wind power tower tube equipment manufacturing businesses, thus more clearly defining the business positioning of the Group and enhancing transparency of all our businesses.”
Mr Liu concluded, “At this moment, no wind power tower tube equipment company is listed on the Main Board of the Stock Exchange of Hong Kong yet. The spin-off of Tianhe will serve as an independent financing platform to provide a source of capital to the wind power tower tube manufacturing business and can enhance the value of the spin-off business. In addition, this move enhances its profile amongst customers, suppliers and other business partners, bolsters our leading position in the PRC wind power industry, and also lays a good foundation for industry consolidation in the future”.
Following the completion of the proposed spin-off, the Group’s percentage holding in the issued share capital of Tianhe will be reduced but Tianhe will remain a subsidiary of the Group, and the results of Tianhe will continue to be consolidated into the financial results of the Group.
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