Temasek, China Grid Said to Buy Stock in Huaneng Unit

Temasek Holdings Pte and State Grid Corp. of China will buy a combined $110 million of shares in the initial public offering of China Huaneng Group Corp.’s renewable-energy unit, two people with knowledge of the transaction said.

Temasek, Singapore’s state investment company, will take a $50 million stake in Huaneng Renewables Corp.’s IPO in Hong Kong, said the people, who declined to be identified before an announcement. State Grid will purchase a $60 million share, the people said.

Tan Yong Meng, a spokesman for Temasek, declined to comment. Lu Jian, a Beijing-based spokesman for State Grid, and Wang Hongmei, head of media relations at Huaneng Group, weren’t immediately available to comment.

Huaneng Group, China’s biggest electricity producer, is seeking as much as $1.3 billion from Huaneng Renewables’s IPO. Some 2.5 billion shares are being sold for HK$2.98 to HK$3.98 apiece, according to terms sent to investors Nov. 29. The stock is due to start trading Dec. 16, according to the term sheet.

The IPO will add to the record $45.4 billion raised in Hong Kong through initial share sales this year, according to data compiled by Bloomberg. The amount excludes funds raised from exercising over-allotment options.

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