By Fiona Law
HONG KONG--Utility CLP Holdings Ltd. (0002.HK) and China's
state-owned China Southern Power Grid Co. will jointly acquire a
Hong Kong electricity company held by a unit of Exxon Mobil Corp.
(XOM), CLP said Tuesday.
CLP will raise its stake in Castle Peak Power Co., a power
generating joint venture, to 70% while China Southern Power Grid
will acquire the remaining 30% from ExxonMobil Energy Ltd., CLP
said in a statement. Before the deal, ExxonMobil Energy owned 60%
of Castle Peak, while CLP owned 40%.
Separately, CLP will acquire all of ExxonMobil Energy Ltd.'s 51%
interest in Hong Kong Pumped Storage Development Co. After the
acquisition, CLP will own 100% of the pumped storage company,
according to its statement.
The total consideration for CLP's both acquisition will amount
to HK$14 billion (US$1.8 billion).
Write to Fiona Law at fiona.law@wsj.com
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