State Power Investment Corporation (SPIC) has kicked off a key restructuring initiative for its coal-power business, as its listed subsidiary Inner Mongolia Electric Power Investment Energy Co., Ltd. (“Energy Investment”) resumed trading on May 19 and announced plans to acquire major assets from its parent group.
Source: China Electric Power News
State Power Investment Corporation (SPIC) has kicked off a key restructuring initiative for its coal-power business, as its listed subsidiary Inner Mongolia Electric Power Investment Energy Co., Ltd. (“Energy Investment”) resumed trading on May 19 and announced plans to acquire major assets from its parent group.
Under the proposed deal, Energy Investment will acquire a 100% stake in Baiyinchua Coal Power Co., Ltd. from SPIC’s Inner Mongolia Energy arm. The transaction will be carried out through a combination of share issuance and cash payments. In addition, the company plans to raise supporting funds via a private placement to no more than 35 qualified investors.
While a final valuation has yet to be disclosed, market expectations point to a deal worth over RMB 10 billion, based on Baiyinchua’s net assets of RMB 7.54 billion and net profit of RMB 1.4 billion as of the end of 2024, along with typical acquisition premiums. The transaction is expected to qualify as a major asset restructuring under regulatory standards.
Energy Investment focuses on coal, aluminum, and power generation. As of the end of 2024, it operated 48 million tonnes of approved coal capacity annually, 860,000 tonnes of electrolytic aluminum capacity, 3 GW of thermal power capacity, and nearly 5 GW of renewables. Baiyinchua’s business is closely aligned, with 15 million tonnes of lignite production, over 400,000 tonnes of aluminum capacity, and 2.62 GW in coal-fired generation.
“This restructuring reflects SPIC’s strategy to integrate coal power with wind, solar, hydrogen, and storage,” said Li Songze, investment advisor at Chuancai Securities. “Coal power remains critical for system reliability and peak load balancing, which in turn supports higher renewable penetration. The move also enhances SPIC’s asset securitization by channeling premium coal assets into its listed vehicle.”
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