CGN Power to buy 82% stake in Huizhou Nuclear Power

CGN Power to buy 82% stake in Huizhou Nuclear Power

CGN Power Co., Ltd. has recently been in the spotlight for its strategic acquisitions and the implementation of lock-up agreements for certain shares. The company has announced plans to buy an 82% stake in Huizhou Nuclear Power. This acquisition, set to be completed by the end of 2025, is a significant step in CGN Power's expansion strategy.

Lock-Up Agreement Details

Certain A Shares of CGN Power are subject to a lock-up agreement ending on August 26, 2025 [1]. These shares will be under lockup for 2195 days, starting from August 23, 2019. The lock-up period varies depending on the shareholder:

- China General Nuclear Power Corporation (CGNPC) holds shares that will be under lockup for 36 months from the company's share listing date.
- Guangdong Hengjian Investment Holding Co., Ltd. and China National Nuclear Corporation hold shares that will be under lockup for 12 months from the company's share listing date.

After the expiry of the lock-up period, yearly transfers of shares by these parties will not exceed 25% of their total holdings, both direct and indirect.

Implications for Investors

The lock-up agreement ensures that a significant portion of CGN Power's shares will remain with key shareholders for a substantial period. This could have implications for liquidity and market dynamics once the lock-up period expires. However, the agreement also provides stability and continuity for the company's strategic direction.

Acquisition of Huizhou Nuclear Power

CGN Power's acquisition of an 82% stake in Huizhou Nuclear Power is a strategic move to bolster its position in the nuclear power sector. The deal, expected to be finalized by the end of 2025, will significantly expand CGN Power's operational footprint and capabilities in nuclear energy production.

Conclusion

CGN Power's strategic acquisitions and the implementation of lock-up agreements are part of a broader plan to solidify its position in the nuclear power industry. As the lock-up period nears its end, investors should closely monitor the company's progress and the potential impact on shareholder liquidity.

References

[1] Certain A Shares of CGN Power Co., Ltd. are subject to a Lock-Up Agreement Ending on 26-AUG-2025. Retrieved from https://www.marketscreener.com/news/certain-a-shares-of-cgn-power-co-ltd-are-subject-to-a-lock-up-agreement-ending-on-26-aug-2025-ce7c50d8df89fe25