China Hydroelectric Gets $2.97/ADS Nonbinding Acquisition Proposal From NewQuest

(RTTNews) - China Hydroelectric Corp. (CHC, CHCWS), an owner, developer and operator of small hydroelectric power projects in the People's Republic of China, announced Wednesday that its board has received a preliminary non-binding proposal letter from NewQuest Capital Partners, through its affiliated entity, CPI Ballpark Investments Ltd, and on behalf of its affiliates and the funds managed by it.

As per the proposal letter, NewQuest is interested in acquiring all of the company's outstanding ordinary shares, including ordinary shares represented by the Company's American depositary shares or ADSs, (each representing three ordinary shares of the company), at a price of $0.99 in cash per ordinary share or $2.97 in cash per ADS.

NewQuest currently owns 80.78 million ordinary shares of the Company, representing approximately 49.83% of the total outstanding ordinary shares of the Company. In addition, NewQuest also holds options and warrants to acquire ordinary shares of the Company, which, if exercised in full, would increase its ownership of the Company to approximately 56.8% of the Company's outstanding ordinary shares.

The company stated that its board, other than the Chairman of the Board of Directors, Amit Gupta, who is also a partner of NewQuest, is reviewing and evaluating NewQuest's proposal.

The company cautioned its shareholders and others considering trading in its securities that the Board of Directors has just received the proposal letter and has not made any decisions with respect to the Company's response to the proposal.