Huaneng Power International

Client: Huaneng Power International
Practice areas involved: corporate, energy
Value: US$3.3 billion

We recently advised Huaneng Power International, the listed unit of mainland China’s largest power producer, on the acquisition of SinoSing Power from Huaneng Group for approximately US$3.3 billion including cash and debt.

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. 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 Isaac Chen. We worked closely on the transaction with Chinese law firm Haiwen, which advised on matters of Chinese law. 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 debt, as well as lengthy negotiations between parent companies and their subsidiaries.”