NewQuest announces interest in acquiring China Hydroelectric Corporation

China Hydroelectric Corporation

China Hydroelectric Corporation's board of directors has received a preliminary non-binding proposal from NewQuest Capital Partners, through its affiliated entity, CPI Ballpark Investments, to acquire CHC's outstanding ordinary shares.

According to the letter, dated Sept. 4, 2013, NewQuest is interested in obtaining all of China Hydroelectric's (NYSE: CHC) outstanding shares represented by CHC's American Depository Shares (ADS) -- each of which represents three ordinary shares in the company. Each ordinary share is worth US$0.99 in cash, or $2.97 per ADS.

NewQuest currently owns 80,777,569 ordinary shares of CHC, representing 49.83% of its total outstanding ordinary shares. NewQuest also holds options and warrants to acquire ordinary shares of CHC which, if exercised in full, would increase its ownership of China Hydroelectric to about 56.8%.

The proposal letter specifies that it is only a preliminary indication of interest, and that it is subject to negotiation and execution of definitive agreements relating to the proposed transaction, CHC said.

China Hydroelectric was founded in 2006 and now has offices in Beijing and New York City. The company owns 25 hydropower projects in China that have a cumulative installed capacity of 517.8 MW. reported in April that CHC had sold its 30-MW Yuheng project to an undisclosed buyer. The company also recently announced changes to its executive team.

For more news from Asia, visit here.

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