CGN Power deal gets sceptical reaction

CGN Power’s asset injection from its parent has not been taken well by investors. They have questions about how to value the assets and worry about the impact on leverage.

Concerns about value and technological uncertainty have put a cloud over a $1.49 billion plan by China General Nuclear Power Corp CGNPC, to sell three nuclear assets to its Hong Kong-listed subsidiary, CGN Power.

CGNPC, the country's biggest nuclear power operator and the largest builder of nuclear power facilities in the world, announced on Monday that CGN Power would acquire 61% of CGNPC-owned Fangchenggang Nuclear, and 100% of CGN Engineering and Lufeng Nuclear.

While on the face of it the valuation is fair, according to analysts, the reality is many of the assets on the table are months or years away from operating...

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