Herbert Smith has advised Huaneng Power International, the listed unit of the mainland's largest power producer, on the acquisition of SinoSing Power from Huaneng Group of approximately HK$26 billion (US$3.3 billion), including cash and debts.
SinoSing Power is the holding company of Tuas Power in Singapore. Tuas Power is the first of three power assets to be sold by state investment firm Temasek Holdings.
Huaneng Power International develops, constructs, operates and manages power plants in China nationwide. It owns 16 operating power plants, and has controlling interests in a further 13 power companies. It is currently the largest listed power producer in China.
Corporate partner Tom Chau led the transaction. He was supported by Hong Kong-based senior associate Sherry Lai, and Beijing-based associate Issac Chen.
Huaneng Power was advised by Haiwen on matters of PRC law. Lehman Brothers was the financial advisor, DBS Asia was the independent financial advisor, KPMG was the accountant and Vigers was the valuer for Huaneng Power.
Tom Chau commented:
"We are pleased to have been involved in this highly complex acquisition. The successful close within such a short period is a further demonstration of our strong competence in dealing with detailed regulatory and compliance issues in complicated M&A transactions. In particular, this transaction involves a blend of cash and debts, as well as lengthy negotiations between parent companies and their subsidiaries."
Notes to editors
1. Herbert Smith has a leading reputation in the energy and natural resources sector. With more than 120 lawyers practising in this sector worldwide, we have extensive experience in oil and gas, power and petrochemical projects for companies around the world. We have advised on a number of major energy transactions and projects, including advising:
- Huaneng Power International on the RMB1520 million (US$209 million) subscription for, through private placement, 200 million new shares in Shenzhen Energy Investment Co prior to its listing on the Shenzhen Stock Exchange. We also advised Huaneng Power International on the RMB420 million (US$56.76 million) acquisition of interest in Jinling Power Plant from Huaneng International Power Development Corporation
- Huaneng Power International, the largest independent power company in China, on the RMB 65.75 million (US$8.3 million) acquisition of a 5% interest in Qinbei Power Plant and the increase of registered share capital of Sichuan Hydropower by way of capital injection of RMB615 million (US$78 million)
- China Petroleum & Chemical Corporation (Sinopec) and its wholly owned subsidiary Sinopec Yangzi Petrochemical on the RMB3659 million (US$504 million) acquisition of oil refinery assets from Sinopec Group Company
- China Petroleum & Chemical Corporation (Sinopec) on its HK$4 billion (US$512 million) acquisition of petroleum wholesale, transport, storage and retail facilities and LPG distribution outlets from China Resources Enterprise. Sinopec is now one of the top four petrol retailers in Hong Kong, competing with Exxon Mobil, Shell and Chevron. This deal is a demonstration of our ability to handle complex cross-border energy deals. Herbert Smith has a long-standing and strong relationship with Sinopec, which goes back to their IPO – the first ever triple listing in Hong Kong, New York, London and Shanghai
2. Herbert Smith LLP is an international legal practice with 1200 lawyers (including over 200 partners) and a network of offices in Europe and Asia. The firm has over 300 staff in Asia and 180 lawyers in offices in Bangkok, Beijing, Hong Kong, Shanghai, Singapore, Tokyo and an associated office in Jakarta. www.herbertsmith.com
3. For further information please contact Tim Wright, Head of Business Development, Asia on +852 2101 4665 or email tim.wright@herbertsmith.com