China SDIC Power plans 7 bln yuan share placement

SHANGHAI, March 4 (Reuters) - China's SDIC Power Huajing Power Holdings Co (600886.SS) said on Wednesday it plans a placement of domestic A shares, worth about 7 billion yuan ($1.02 billion), to buy 100 percent of SDIC Electric Power Co, which belongs to the same parent.

SDIC Power Huajing plans to issue 825 million shares to its state-owned controlling shareholder, State Development and Investment Corp (SDIC). The shares will be priced at 8.49 yuan, or the average price over the past 20 trading days, the company said in a statement to the Shanghai Stock Exchange.

The asset injection into SDIC Power Huajing would increase its installed power generating capacity by 86 percent to 12.64 million kilowatt, the company said.

The proportion of installed hydropower capacity would be boosted to 41 percent, which would help ease the pressure from high coal costs.

The plan requires approvals from shareholders and authorities, the company said in the statement. ($1=6.841 Yuan) (Reporting by Rujun Shen; Editing by Ken Wills)