China Longyuan Power, parent CHN Energy weighing delist-relist or A-H share dual-listing – sources

China Longyuan Power and its 58.44% owner CHN Energy are weighing potential deal options for the company, including a delisting from the HKEx and a relisting on the A-share stock market, or an A-H dual listing, according to a source familiar with the situation and a source close to the situation. 

• Decision to be made by end of 2H20  
• Banks pitching but none mandated 

China Longyuan Power [HKG:0916] and its 58.44% owner CHN Energy are weighing potential deal options for the company, including a delisting from the HKEx and a relisting on the A-share stock market, or an A-H dual listing, according to a source familiar with the situation and a source close to the situation. 

The companies are leaning towards the delist and A-share relist, but are still at the preliminary discussion stage and nothing has been decided yet, the source familiar with the situation said. 

The source familiar added that a decision could be reached over the next one or two months, or by year end at the latest. The source said China Longyuan has been approached by several advisors regarding the potential transaction, but has yet to give out any mandates. 

China Longyuan’s shares climbed 17% to HKD 5.44 since midday on 30 July when this news service speculated about a possible privatisation. The report flagged the company as a potential privatisation candidate based on a steady flow of deals involving H-share listed renewable energy companies over the past 18 months. The article pointed out that a deal would require support from Wellington Management (MM/DR), its largest minority shareholder with 13.01% of the H-shares. 

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by Sirui Shao in Hong Kong and Jennifer Zhang in Chongqing