Perennial Energy to Acquire Stake in Coal Miner

MT Newswires Live

01/21

Perennial Energy (HKG:2798) said it agreed to acquire a 51% stake in Guizhou Huaneng Jiayuan Coal, according to a Hong Kong bourse filing Tuesday.

Shares of the coal company fell over 3% in morning trade Wednesday.

Under the agreement, the firm's indirect wholly-owned subsidiary Jiutai Bangda will acquire the stake in exchange for a capital contribution of 114.5 million yuan.

The consideration will be settled through the transfer of the mining rights to the Xiejiahegou coal mine and related assets.

Guizhou Huaneng Jiayuan Coal owns the mining rights to the Youyi and Jieji coal mines in China's Guizhou province.

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