China Energy Investment Corp, or CHNENERGY, will be the parent company after the completion of the restructuring and merger with China Guodian Corp by way of absorption.
On January 4, CHNENERGY has passed board resolutions to approve the aforesaid proposal, said China Shenhua Energy Co., Ltd., used to the listed subsidiary of Shenhua Group in its announcement on the same day.
At the meantime, Guodian will be deregistered, said the announcement.
This is the latest progress on the merger, following the State Council approved the merger on August 28, 2017 and Shenhua Group renamed to CHNENERGY on November 27, 2017.
CHNENERGY, as the parent company after the merger, will inherit and assume Guodian's "entire assets, liabilities, business, employees, contracts, qualifications and other rights and liabilities", the announcement said, adding subsidiaries under Guodian Group and the equities and interests it held will be transferred to the parent company.
After the merger, CHNENERGY will continue to be the controlling shareholder of China Shenhua Energy.
The new company has total assets of 1.78 trillion yuan, with asset-liability ratio of 62.9%, ranking nearly 100 in worldwide top 500, showed cacluation based on finanical data as of the end of 2016.
Related information – China completes Shenhua-Guodian merger, names top execs
China plans to create several "super-large" coal mining companies by the end of 2020, said country's National Development & Reform Commission in a statement.
By then, each of these coal tycoons will
have annual production capacity of 100 million tonnes, which will help optimize
structures and phase out outdated capacity in the sector.
(Writing by Alex Guo Editing by Harry Huo)
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