August 30, 2017 / 8:55 AM / a year ago

China Three Gorges unit seeking $1.5 billion from new investors: sources

HONG KONG (Reuters) - China Three Gorges New Energy, a unit of the country’s top hydropower developer, plans to raise about 10 billion yuan ($1.5 billion) from new investors to develop its wind power business, sources with knowledge of the matter said.

The wholly owned unit of state giant China Three Gorges Corporation is in talks with China Life Insurance (601628.SS), Chinese private equity firms and other institutional investors, the sources told Reuters.

Beijing has been calling on state-owned firms to reform their ownership structure by bringing in new capital from private investors and this fundraising is part of the mixed-ownership plans, they said.

The private share sale would be roughly equivalent to 30 percent of the company, one of the sources said, adding that the unit was looking to go public on the Shanghai stock exchange in about three years.

The deal is likely to be finalised by the end of the year, the sources said, declining to be identified as the financing plans were not public.

Three Gorges and China Life did not immediately respond to requests for comment. A representative for Three Gorges New Energy could not be immediately reached for comment.

Three Gorges New Energy plans to use part of the proceeds to build offshore wind power plants and acquire photovoltaic and wind stations across the country, the sources added.

Reporting by Julie Zhu; Editing by Edwina Gibbs

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