HK-listed China Resources Power sinks to near 6-month low after spin-off report

China Resources Power Holdings

16/02/2022 08:16

** Shares of China Resources Power  0836.HK  (CRP) drop 11%
to HK$15.84, lowest since Aug. 20, extending losses for the
fourth straight session
    ** Stock set for the biggest daily percentage decline since
Jan. 4; second biggest percentage decliner in Hang Seng
Composite Index  .HSCI  
    ** Citi says CRP's share price has been under pressure after
media report that it would spin-off its renewable energy segment
in HK to raise $2 bln in mid-2022, on concerns the spin-off will
be adverse to its valuations and may see a slowing in expansion
after the spin-off 
    ** "In our opinion, the spin-off will not change its
businesses much, as we expect the renewable energy segment will
remain CRP's subsidiary, keeping it close in future as well,"
Citi wrote in a note, adding it likes CRP for profit growth from
renewable expansion 
    ** CRP has picked four banks to lead the spin-off of its
renewable energy businesses in a Hong Kong IPO which could raise
about $1bn–$2bn, publication IFR reported citing people with
knowledge of the matter  urn:newsml:reuters.com:*:nIfp6xm5MG
    ** Hang Seng Composite Index tracking energy stocks  .HSCIE 
gains 1.1%, while Hang Seng Composite Index  .HSCI  and Hang
Seng Index  .HSI  both rises 1.4%

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))