China's GD Power to sell shares, buy parent assets

Shanghai :GD Power Development Co., a major electricity and heat supplier, said on Saturday it would issue over 3 billion yuan ($390 million) of new shares to buy generating assets from its state parent.

The company said it planned a public offer of up to 400 million shares, or about 16 percent of its existing share capital.

It did not specify a price for the issue, but at the stock's last market close of 13.34 yuan, the offer could raise as much as 5.34 billion yuan.

Proceeds will be used to buy stakes in half a dozen assets around China, including projects in Zhejiang province and Inner Mongolia, from the parent. The official Shanghai Securities News said the total price of the projects was about 3.3 billion yuan.