(Yicai) Oct. 23 -- Shares of China Longyuan Power Group soared by the exchange-imposed daily trading limit after the state-owned new energy power firm said it will buy eight new energy assets from units of its controlling shareholder.

Longyuan [SHE: 001289] closed 10 percent up at CNY17.59 (USD2.47) in Shenzhen today. Its Hong Kong-listed stock [HKG: 0916] rose 4.2 percent to HKD7.16 (92 US cents).

Longyuan will pay CNY1.7 billion (USD238.4 million) to three regional new energy firms under its controller China Energy Investment Group to receive their entire stakes in eight projects in Gansu, Jiangxi, and Shandong provinces and Guangxi Zhuang Autonomous Region, the Beijing-based buyer announced yesterday.

The new energy projects from the deal have a total installed capacity of nearly 1,447 megawatts, of which 1,316 MW of wind power and 716.8 MW of solar power, the firm added. Some 586 MW of the capacities are still under construction.

Once the transaction is completed, Longyuan will become the controlling shareholder of the eight projects, holdings stakes of 51 percent to 100 percent in each of them.

“The transaction will reduce horizontal competition between Longyuan and its controlling shareholder, expand the company’s business layout in the field of new energy, enlarge its market share, increase its power generation revenues, improve its profitability, and enhance its core competitiveness,” Longyuan noted.

Longyuan is China’s first new energy power investor and operator dedicated to wind power project development. It controlled a total installed capacity of 35,593.7 MW as of the end of last year, of which 27,754.4 MW of wind power and 5,964.3 MW of photovoltaic power and other types of renewable energies, as well as 1,875 MW of installed thermal power capacity.

Editor: Futura Costaglione