2021.11.30
CGN Wind Power Corporation recently completed a successful capital increase on the China Beijing Equity Exchange. The company introduced 14 strategic investors, and a total of RMB 30.5 billion was raised. JunHe represented the investors and carried out legal due diligence on the relevant subsidiaries and assets of the renewable energy sector of CGN. They also participated in the negotiation and revision of the transaction documents.
The capital increase by CGN integrated two subsidiaries of its renewable energy sector. CGN Wind Power Corporation was integrated into CGN Solar Energy Development Co., Ltd. The project went through public listing and strict competitive negotiation procedures, and 14 strategic investors were finally selected. These included the National Social Security Fund of the PRC, the State Grid Corporation of China, Southern Power Grid, China Reform Holdings Corporation Ltd., China Chengtong Group, Guangdong Hengjian Investment Holdings Co., Ltd. and Sichuan Provincial Investment Group Co., Ltd, as well as the four major banks, various insurance companies and industrial funds. A total of RMB 30.5 billion was raised which will be used for the development and construction of wind power and photovoltaic energy storage projects, and the expansion of new businesses such as energy storage, integrated intelligent energy, power sales and value-added power services. The project set several records, including "the largest equity financing project in the domestic renewable energy and power sector", "the largest equity financing project of a domestic non-listed company of the year" and "the highest amount of capital raised in the equity market for a capital increase”.
This project, as a major strategic work of CGN to implement hybrid reform, progressed according to a strict timetable, from the preliminary communications all the way to the listing transactions. During the preliminary communications, JunHe’s team faced the reality that the assets of the subject company's renewable energy sector were huge. JunHe completed the legal due diligence of the hundreds of subsidiaries, branches and over 300 power station projects on time and with outstanding project management, active internal and external communications and close cooperation among the team within the limited time ddperiod. JunHe provided valuable analysis and legal opinions to investors based on its rich experience in previous renewable energy projects and in conjunction with the regulatory requirements of the industry. The positive results of the project were fully recognized by the many investors. After the listing, JunHe continued to assist the investors in the demonstration and construction of the investment structure and participated in the negotiation and revision of the transaction documents throughout the process, winning high praise from the client and the subject company for its pragmatic and professional work attitude.
The leading partner of this project was TANG, Jie.
