Shenzhen Expressway Co. Ltd., a Chinese toll highways and roads building unit of Shenzhen International Holdings, aims to take control of renewable energy and wind power company Nanjing Wind Power Technology Co. Ltd.
Under the terms of the transaction, Shenzhen Expressway’s fully-owned subsidiary, Shenzhen Expressway Environmental Co. Ltd., will buy a 30 percent stake in Nanjing Wind for 210 million yuan ($31.3 million).
The acquisition, which will enable Shenzhen Expressway to grow its own environmental protection business, will extend its revenue source and profit base, as well as help it to rapidly enter the wind power industry.
Following the deal closure, Shenzhen Expressway Environmental will infuse a further $44.7 million in the wind power business as part of a capital hike that will boost its shareholding to 51 percent.