Shenhua Guoneng Energy Group Corporation has quoted to sell its 20 percent stake in Shanxi Jindong Energy for a base price of 143 million yuan, according to information published on China Beijing Equity Exchange.
The transfer is likely to be one of the ways that Shenhua Guoneng Energy uses to get rid of downturn amid sluggish coal industry and a step forward towards asset structure adjustment, analysts say.
As a subsidiary of Jincheng Anthracite Mining Group, Shanxi Jindong Energy was established in 2005 with initial registered capital of 630 million yuan. Jincheng Anthracite Mining Group, Shenhua Guoneng Energy Group Corporation and Shanxi Hexin Power Development hold a 40 percent, 40 percent and 20 percent stake respectively, in Shanxi Jindong Energy.
Shanxi Jindong Energy saw no business revenue since 2014. The company incurred net losses of 7.0905 million yuan on 2014 and reaped net profits of 5.4186 million yuan for the first seven months of 2015.
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