CNIC, GIC In Talks for China Three Gorges Foreign Unit Stake

CNIC Corp. and GIC Pte are among investors in talks with China Three Gorges Corp. about investing in its overseas asset portfolio, according to people familiar with the matter.

Chinese state-backed fund CNIC and Singaporean sovereign wealth investor GIC are separately working with advisers on potentially buying into the power company’s international unit, the people said, asking not to be identified as the matter is private. Another Chinese state-owned fund is also weighing an investment, one of the people said.

China Three Gorges could sell as much as a 40% interest in its international asset portfolio, the person said. The stake could fetch as much as $4 billion, Bloomberg News reported in July.

Discussions between the parties are ongoing and may not ultimately lead to transactions, the people said. Other bidders could also emerge, they said. A representative for GIC declined to comment. Representatives for China Three Gorges and CNIC didn’t immediately respond to requests for comment.

China Three Gorges has been snapping up overseas assets in the past decade, while it has also met more scrutiny outside the country. In August, the U.S. Department of Defense added China Three Gorges to a list of firms claimed to have ties to the Chinese military. Publicly traded companies on the list were forced off U.S. exchanges.

However, the state-owned power giant has continued to strike cross-border deals, despite tighter restrictions as well as the coronavirus pandemic curtailing travel.

The company purchased Spanish solar park assets with more than 500 megawatts of capacity from X-Elio Energy SL in August. It announced last month that it had agreed to acquire a 400 megawatt renewable energy portfolio in Spain for 500 million euros ($603 million).

©2021 Bloomberg L.P.

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