State Grid considers selling stakes in overseas assets

16 January 2020 - 12:00 am UTC

The State Grid Corporation of China is looking at ways to diversify the shareholding structure of its overseas assets worth more than USD 63bn, according to an internal document seen by Inframation.

The utility giant – which also owns telecom companies, elderly care facilities and other infrastructure assets – will consider proposals this year as part of a mixed-ownership reform push to introduce new investors, according to the document. It is already reviewing ownership structures of its domestic holdings. The company has total assets of more than CNY 3.93trn (USD 559bn).

The moves are part of State Grid’s response to President Xi Jinping’s call for major SOEs to take in private investment and improve corporate governance and increase competitiveness. It has already conducted public auctions of projects ranging from elderly care facilities and telecom infrastructure to transmission lines and hydropower.

In December last year, the company said it would sell a 40% stake in its CNY 22.5bn Qinghai-Henan ±800kv UHV Transmission Line to the asset management arm of the People’s Insurance Company of China (PICC).

It has also agreed to sell 20% of its 1.28 GW pumped hydropower station in Tongcheng city in the central Anhui province to Wanneng Power, an Anhui provincial government power generator. It is in talks to sell down part of a telecom subsidiary to the Yingda Industrial Investment Fund and Blue Economy Zone Industrial Fund. 

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