Shandong Luneng Group Co Ltd, which is principally engaged in the development of coal-fired power and properties, is selling a 60% stake in a coal gas subsidiary through another subsidiary, Shanxi Luneng Jinbei Aluminum Co Ltd, according to Shanghai United Assets and Equity Exchange.

Shanxi Luneng Jinbei Aluminum has a 60% stake in the target firm. Shanxi Hexin Electric Power Development Co Ltd holds a 30% stake and Shanxi Xizhou Coal Gas Co Ltd holds the remaining 10%.

The target firm, which has a registered capital of RMB 300 million, reaped RMB 377 million in operating revenue but suffered RMB 43.1 million in net losses last year.

According to a report posted on Nov. 30, 2009, the target firm's book value was RMB 1.75 billion, and its assets were valued at RMB 2.15 billion.

(China Knowledge Mar. 2010)