Subject to negotiation and definitive agreements, NewQuest is interested in acquire all of China Hydroelectric’s outstanding ordinary shares, including ordinary shares represented by the company’s American depositary shares (ADSs) at a price of $0.99 in cash per ordinary share or $2.97 in cash per ADS.
NewQuest, which currently owns 80,777,569 ordinary shares including 3,371,502 ADSs and 70,663,063 ordinary shares, possesses options to acquire 6,959,893 ordinary shares under an option agreement between CPI Ballpark and Vicis Capital Master Fund; and a warrant to acquire 10,004,157 ordinary shares of the company.
NewQuest, which currently represents around 49.83% of China Hydroelectric total outstanding ordinary shares, could own approximately 56.8% of the company’s outstanding ordinary shares, should transactions using those options and warrant are exercised.
NewQuest has hired Weil, Gotshal & Manages as its legal counsel to deal with the potential acquisition.
