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The Financial Alliance reported on December 16 that Huaihe Energy (600575.SH) is planning to acquire part of the equity in Huaihe Energy Electrical Group from the controlling shareholder, leading to a suspension of the company's stocks starting tomorrow.

Huaihe Energy announced tonight that it is planning to purchase 89.3% equity in Huaihe Energy Electrical Group Co., Ltd. held by the controlling shareholder Huainan Mining through issuing shares and paying cash, while raising supporting funds.

Huaihe Energy stated that preliminary calculations indicate this Trade is expected to constitute a major asset restructuring as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies". It will not result in a change of the company's actual controller, does not constitute a restructuring listing, and constitutes a related transaction. Upon the company’s request, its stocks will be suspended from trading beginning December 17, 2024, with the expected suspension period not exceeding 10 trading days.

Public information shows that Huaihe Energy primarily engages in thermal power generation, electricity sales, railroad Transportation, and coal blending business. Huainan Mining is the company's controlling shareholder, holding 56.61% of its shares.

It is worth noting that the controlling shareholder Huainan Mining had twice planned to use Huaihe Energy as a platform for overall Listing As a Whole but both attempts ended in failure. However, the pace of asset injection by Huainan Mining has not stopped. On December 6, 2023, Huaihe Energy announced that it intends to acquire 100% equity in Panji Power Generation Company for a total transaction price of 1.181 billion yuan.

In September, Huaihe Energy responded on the interactive platform that as the only overall Listing As a Whole platform for Huainan Mining Group, it has been two years since the last restructuring failure. As a publicly listed company, there is an obligation to urge the group to accelerate progress and fulfill the expectations of past company leaders, all employees, and shareholders as soon as possible. Furthermore, it stated that it has completed the acquisition of 100% equity in Panji Power Generation Company as of December 2023. Additionally, according to the public market commitment made by Huainan Mining Group during the 2016 restructuring, the currently under-construction or planned Panji Power Plant Phase II, Xieqiao Power Plant, Luhe Power Plant Phase IV, and later coal and power projects will also be injected into the listed company once operational conditions are met.

In terms of performance, the Earnings Reports show that the company's revenue for the first three quarters is 23.595 billion yuan, a year-on-year increase of 12.73%; the Net income attributable to shareholders of the listed company is 0.842 billion yuan, a year-on-year increase of 25.85%.

Additionally, it is worth noting that the controlling shareholder and actual controller of Huaihe Energy are both the Anhui State-owned Assets Supervision and Administration Commission. Anhui is actively promoting mergers and acquisitions; since October, several listed companies in Anhui, including Hefei Taihe Intelligent Technology Group (603656.SH) and H.B. Fuller (301297.SZ), have announced plans for acquisition of control and mergers.