Huaneng Power International, Inc. (SEHK:902) entered into an equity transfer agreement to acquire 50% stake in China Huaneng Group Fuel Co., Ltd. from China Huaneng Group for approximately CNY 110 million in cash on January 11, 2013. In a related transaction, Huaneng Power International, Inc. entered into a capital increase agreement pursuant to which the Huaneng Power agreed to make a capital injection of CNY 1.4 billion into China Huaneng Group Fuel after the completion of the acquisition. The consideration is payable by one-off payment within 15 working days from the closing date.

After the acquisition and the capital increase, China Huaneng Group Fuel's Board will comprise of 5 Directors, among which 2 Directors will be appointed by China Huaneng Group while 2 Directors will be appointed by Huaneng Power International. There will be an additional employee Director who will be elected democratically at the employee meeting or employee representative meeting. As at September 30, 2012, China Huaneng Group Fuel Co., Ltd reported operating revenue of CNY 1640.01 million, operating profit of CNY 16.82 million, profit before tax of CNY 16.82 million, net profit of CNY 12.68 million, total assets of CNY 1300.99 million and net assets of CNY 302.88 million. The completion of the transaction will take place on the day when Huaneng Power International is registered with Administration for Industry and Commerce as the holder of 50% interest in China Huaneng Group Fuel Co., Ltd. As on January 11, 2013, transaction is approved by Board of Directors of Huaneng Power International. The transaction is however still subject to regulatory approvals in accordance to State-owned Assets Supervision and Administration Commission provisions. As on April 24, 2013, the business registration has not been completed. Zhong Tian Hua Assets Appraisal Co., Ltd. acted as independent valuer for the transaction.