Wu Yiyao in Shanghai
(chinadaily.com.cn) Updated: 2013-02-21 17:23Shanghai-listed Zhejiang Southeast Electric Power Co Ltd, said in a statement on Thursday that it plans to swap its US dollar-denominated B shares for renminbi-denominated shares trading on the exchange's main A-share board.
The move is the first B-to-A conversion plan approved by the China Securities Regulatory Commission.
Trading of ZSEP shares was suspended on Nov 21.
Zhejiang Zheneng Electric Power Co Ltd — ZSEP's largest shareholder — will issue shares in the A-share market to swap for ZSEP's B shares.
ZSEP will exit the B-share market after the operation. ZZEP's 39.9 percent stake in ZSEP will not be converted.
The price of ZZEP's shares expected to be issued is between 5.71 yuan ($0.90) per share to 6.63 yuan per share. ZSEP's B shares price is about $0.552 or 4.9 yuan per share.
Analysts said the move sets a significant precedent for other companies looking to exit the illiquid B-share market, and is another option in addition to the B-to-H conversion plan established in 2012.
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