By Wang Xinyuan

China's largest listed hydroelectric power corporation will resume trading today after a 12 month restructuring absence.

China Yangtze Power Co (CYPC) announced Friday the acquisition of 107.5 billion yuan ($15.76 billion) worth of assets from its parent company, China Three Gorges Project Corporation (CTGPC), a State-owned enterprise.

CYPC will issue 1.55 billion shares at 12.89 yuan ($1.89) each to CTGPC in exchange for 20 billion ($2.93 billion) worth of assets. CYPC will also pay 37.5 billion yuan ($5.5 billion) in cash and take over 50 billion yuan ($7.33 billion) in debt from its parent company.

CTGPC currently holds 62.07 percent or 5.84 billion shares of CYPC. Ownership will increase to 67.44 percent or 7.39 billion shares after the transaction, which should be completed by the end of June.

CYPC shares have been suspended from trade for more than a year pending the restructure that aims at enhancing the company’s core competence and sustainable profitability.

The acquisition will upgrade CYPC’s installed capacity by 2.5 times its current level to 21 million kilowatt and the net profit this year to 6.3 billion yuan ($923.75 million) from 3.93 billion yuan ($576.25 million) last year, estimated the company.

The acquired capital includes power generation assets and equities of auxiliary production companies under the Three Gorges project: 18 power generating units with a total installed capacity of 12.6 million kilowatt; the dam, power generation and production facilities; and six companies providing facility management, tender invitations, supervision, water supply, telecommunications operation and maintenance for the hydropower project construction as well as power generation.

CYPC acquired eight power generating units from CTGPC over the past six years. Once the restructure is complete, CYPC will possess all of the power-generation assets of the Three Gorges project.

The move also clarifies the strategic positioning and separate responsibilities of CYPC and CTGPC.

CTGPC will focus on State-ownership management and development of the Yangtze’s upper reaches hydropower projects. CYPC will focus on business operations of the Three Gorges Dam.

The Three Gorges Dam is the largest hydroelectric power station in the world with an annual power generation of over 100 billion kilowatt-hours. The main project was completed at the end of last year, with total investment reaching 180 billion yuan ($26.39 billion).

The Three Gorges project officially began construction in 1994 by CTGPC, a State-owned company established in 1993. In 2002, CTGPC set up CYPC as its subsidiary. CYPC was listed on the Shanghai Stock Exchange in November 2003.