CSEC,China Shenhua(SH:601088) Zhong Guo Ji Jin Bao·2025-12-19 15:29Core Viewpoint - China Shenhua has announced a significant acquisition plan to purchase assets from its controlling shareholder, China Energy Investment Corporation, with a total transaction price of approximately 133.598 billion yuan [2][9]. Group 1: Transaction Details - The adjusted transaction plan indicates that China Shenhua will acquire equity stakes in 12 target companies, with the payment structure comprising 30% in shares and 70% in cash [5][12]. - The pricing benchmark for the share issuance is set at 29.40 yuan per share [5]. - The overall transaction price was adjusted to 133.598 billion yuan due to a capital increase of 4.927 billion yuan in China Shenhua Coal-to-Liquid Chemical Co., Ltd. after the valuation benchmark date [9]. Group 2: Target Companies - The acquisition involves 12 target companies, including 100% stakes in several entities such as Guoyuan Power Co., Xinjiang Energy Chemical Co., and China Shenhua Coal-to-Liquid Chemical Co. [6][7]. - Notably, the acquisition of 100% equity in China Energy Group E-commerce Co. has been excluded from the revised plan [2][6]. Group 3: Strategic Implications - This transaction is expected to resolve competition issues within the industry, optimize resource allocation, and enhance core competitiveness for China Shenhua [13]. - Post-transaction, the coal reserves are projected to increase to 68.49 billion tons, a growth rate of 64.72%, while the recoverable coal reserves will rise to 34.5 billion tons, reflecting a 97.71% increase [13]. - The coal production capacity is anticipated to grow to 512 million tons, marking a 56.57% increase [13]. Group 4: Financial Impact - Following the transaction, China Shenhua's total assets are projected to increase from 635.909 billion yuan to 896.587 billion yuan, while the equity attributable to shareholders is expected to rise from 406.505 billion yuan to 419.038 billion yuan by July 31, 2025 [14]. - The net profit after deducting non-recurring items is forecasted to increase from 29.255 billion yuan to 32.637 billion yuan for the first seven months of 2025 [14].