Jilin Power to Buy Wind Companies for $27.5 Million

Dec. 10 (Bloomberg) -- Jilin Power Share Co., a Chinese electricity generating company, will pay 183 million yuan ($27.5 million) to buy two wind power developers from Mengdong Century Concord New Energy Co.

The companies, Mengdong Century Concord First Wind Power Co. and Mengdong Century Concord Second Wind Power Co., each have a 49.5-megawatt wind farm in Jilin province, Jilin Power said today in a filing to the Shenzhen stock exchange. The wind farms, which will be paid a tariff of 0.58 yuan a kilowatt-hour, will start operating by the end of this year.

Both companies will be wholly owned by Jilin Power once the deal is completed.

Mengdong Century Concord New Energy is a wind project developer and a unit of China Power Investment Corp., which is a major shareholder of Jilin Power.

The acquisition will increase Jilin Power’s clean energy capacity by 50 percent to 297 megawatts, it said.

The company, whose shares have declined about 22 percent this year, in September acquired two operating wind farms in Jilin.

To contact Bloomberg News staff for this story: Feifei Shen in Beijing at Fshen11@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.