Wei Qiao Textile Invested Heavily In 5 Billion 500 Million Acquisition Of Thermal Power Plant

Here world Clothing shoes and hats The small editor of the net introduces Wei Qiao textile 5 billion 500 million purchase and power plant.

Wei Qiao textile (02698) announced that the group yesterday set up a thermoelectric asset swap agreement with the holding company, Shandong Wei Qiao venture. According to the agreement, Wei Qiao textile will purchase the seventh thermal power plant in Shandong Wei Qiao with 4 billion 368 million yuan (about 5 billion 529 million HK dollars), while Wei Qiao textile will sell the Wei Qiao thermal power plant to the holding company within 5 business days after the completion of the thermoelectric asset replacement agreement, and offset the difference of the respective value of the seventh thermal power plant and the Wei Qiao thermal power plant by cash, that is, about 531 million yuan (about 673 million HK dollars). Wei Qiao textile will hold a provisional shareholders' meeting, and the voting on the proposed resolution will be carried out by voting.

For the benefits of the thermoelectric assets replacement agreement, Wei Qiao textile said that the Wei Qiao thermal power plant has been operating for over 8 years, while the seventh thermal power plant of the holding company has been gradually put into operation since the fourth quarter of last year, which has higher operating efficiency and lower maintenance and maintenance costs.

The unit capacity of the Wei Qiao thermal power plant is between 30 MW and 60 MW, while the seventh thermal power plant of the holding company has a generating capacity of 330 MW per unit, and the equipment is more environmentally friendly. The cost of generating electricity per kilowatt of the seventh thermal power plant of the holding company is about 30% lower than that of the Wei Qiao thermal power plant at present. After completion of the acquisition, the cost of electricity generated by Wei Qiao textile will be reduced.

At the same time, Buy Large power plants will avoid potential investments in building large power plants. Since the existing power grid of Wei Qiao textile can be used as the power produced by the seventh thermal power plant of the transportation holding company, production and operation will not be adversely affected by the acquisition and sale. In light of the above circumstances, the Board considers that the terms of the thermoelectric asset replacement agreement and the terms and conditions of sale under it are fair and reasonable.

In addition, Wei Qiao textile Agreement with the holding company on renewing the supply of cotton yarn / grey cloth and denim will last from January 1, 2015 to December 31, 2017. According to the agreement on the supply of reconstituted cotton / grey cloth and denim, Wei Qiao textile will continue to supply or will enable its subsidiary to supply cotton yarn / grey cloth and denim to Shandong Wei Qiao.