China Hydroelectric goes private

NYSE-listed China Hydroelectric Corporation has decided to go private.

By K.Steiner-Dicks on Jan 15, 2014

NYSE-listedChina Hydroelectric Corporation, an owner, developer and operator of small hydroelectric power projects in the People's Republic of China has entered into a definitive agreement to merge with parent company CPT Wyndham Holdings and merger entity CPT Wyndham Sub, which are affiliates of NewQuest Capital Partners and NewQuest Funds.

The parent company will acquire China Hydroelectric for US$1.17 per ordinary share or US$3.51 per American Depositary Share, each representing three ordinary shares ("ADS"). This represents a 57.4% premium over the closing price of US$2.23 per ADS as quoted by the New York Stock Exchange on September 3, 2013, and a 60.5% premium over the volume-weighted average trading price of the Company's ADSs during the 30 trading days prior to, and including, September 3, 2013, the last trading day prior to the Company's announcement on September 4, 2013.

NewQuest sent a non-binding proposal letter through its affiliate CPI Ballpark Investments to acquire all of the Company's outstanding ordinary shares not already owned by them.

China Hydroelectric was founded in 2006 and now has offices in Beijing and Manhattan. The company owns 25 hydropower projects in China that have a cumulative installed capacity of 517.8 MW. According to a report by CHC sold its 30MW Yuheng project to an undisclosed buyer in April 2013.

However, the company had announced that it sold the plant in October 2012 for $44.3m, finalising the deal with net proceeds of $20.8m for China Hydroelectric after the assumption of debt by the buyer.