China Power International Holding Ltd, the investment arm of one of China's five largest power generators, has bought a 6 percent share of the Macao Electricity Co (CEM), the monopoly electricity supplier in Macao.
The deal marks the first time that a Chinese mainland company has acquired a stake in a power company in the Macao Special Administrative Region (SAR) since the the region returned to China in 1999.
China Power International bought a 3 percent share from the Sino-French joint venture Suez and another 3 percent from Electricidade de Portugal. After the acquisition, those two groups each hold 42 percent of CEM.
China Power International did not disclose how much it paid for the shares.
The company said in a statement that the deal is a low-risk one as the profit situation of CEM is stable, given its monopoly status.
"The acquisition is a significant step for the international development of China Power International and its parent, the China Power Investment Group," said a statement from China Power International.
Yves-Thibault de Silguy, vice-president of Suez, said the China Power International share acquisition is significant. It show the company's motivation and capacity to contribute to CEM's business, and it can also provide new business opportunities for CEM, he said.
With assets worth 3 billion patacas (US$375 million), the CEM power supply is hooked up to the southern China power grids.
China Power International has a development plan to strengthen its portfolio in prosperous South China, including Guangdong Province.
The China Power Investment Group regards China Power International as its arm for overseas development.
The parent company also plans to list China Power International on an overseas market.
(China Daily August 4, 2003)
