China Power New Energy Development Co Ltd said it planned to sell 2.8 billion new shares to China Yangtze Power Co, raising HK$2.1 billion ($270 million) to fund its investment in power generating projects.

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In a filing with the Hong Kong bourse over the weekend, China Power New Energy said it would issue the new shares at HK$0.75 each to China Yangtze Power, which would hold 26.2 percent of the enlarged share capital on completion of the deal.

Shareholding of its current major shareholder China Power New Energy Ltd will be diluted to 25.93 percent after the deal from 35.14 percent, the company said.