China Shenhua Energy (601088.SH, 1088.HK) will buy US$1.3 billion worth of assets from its parent China Shenhua Group to boost its coal reserves, state media reported. The move will raise Shenhua Energy’s recoverable coal reserves by 21% to 14 billion tons, and also add power generation and clean coal assets to the company’s portfolio. Shenhua’s share price jumped 6% on the announcement, but analysts had thought Shenhua would take a larger asset chunk from its parent. "Investors were expecting the company to buy more from the parent, but this will be taken as the start of more acquisitions," said Helen Lau at UOB-Kay Hian.
Categories