Mei Ri Jing Ji Xin Wen·2025-12-19 15:41Core Viewpoint - China Shenhua is set to acquire assets from its controlling shareholder, China Energy Group, and its wholly-owned subsidiary, Western Energy, through a significant merger plan valued at 133.598 billion yuan, enhancing its coal resources and production capacity substantially [2][3]. Group 1: Transaction Details - The acquisition involves 12 target companies across various sectors, including coal, coal-fired power, and coal chemical industries [2]. - Post-transaction, China Shenhua's coal reserves will increase to 6.849 billion tons, a growth rate of 64.72%, while its recoverable coal reserves will rise to 3.45 billion tons, marking a 97.71% increase [2]. - The overall valuation increase of the target assets is 59.52%, with the final transaction price adjusted to 133.598 billion yuan, financed through a combination of 30% share issuance and 70% cash payment [2]. Group 2: Financial Impact - The company plans to raise up to 20 billion yuan in supporting funds to cover cash payments and related transaction costs [2]. - Following the completion of the transaction, the earnings per share (EPS) for 2024 is projected to rise to 3.15 yuan, an increase of 6.10%, and for the first seven months of 2025, EPS is expected to reach 1.54 yuan, up by 4.40% [3]. - The transaction is anticipated to significantly enhance the company's operational capabilities and asset quality, thereby improving overall profitability [3]. Group 3: Strategic Implications - The merger is expected to facilitate cleaner production, reduce operational costs, and enhance sustainable profitability, aligning with the company's strategy of achieving greater value through integration [3]. - The transaction includes performance commitments and compensation arrangements from China Energy Group and Western Energy [4].