China Three Gorges’ sale of a stake in its global portfolio has been put on hold due to the coronavirus outbreak.
China Three Gorges’ sale of a minority stake in its global portfolio has been put on hold as the country grapples with the coronavirus outbreak, according to sources familiar with the matter.
The state-owned company is based in Hubei province, the epicentre of the epidemic that has accounted for more than 1,800 fatalities so far. Three Gorges started looking for an investor last year in an effort to recycle capital and diversify its ownership. CITIC Securities is financial advisor for the sale. State Grid Corporation of China is engaged in a similar sale process.
In addition to its power assets, the company has interests in infrastructure assets including Beijing Enterprises Water and Changjiang Ecological Environment Group that boast a raft of water PPP projects along the Yangtze River.
The company was formed to own and manage China’s largest dam on the Yangtze. It controls more than two dozen subsidiaries, which in turn hold South Asian, Latin American and European assets. Some of the company’s interests – such as its 23% stake in Energias de Portugal (EDP) – are minority positions.
The company’s corporate structure will likely need to be tidied up before any transaction is concluded, sources previously told SparkSpread.