China Hydroelectric Agrees To Be Bought By CPT Wyndham Holdings - Update

(RTTNews) - China Hydroelectric Corp. (CHC, CHCWS), an operator of small hydroelectric power projects in the People's Republic of China, Monday said it has agreed to be bought by CPT Wyndham Holdings for $1.17 per ordinary share or $3.51 per American Depositary Share, each representing three ordinary shares.

China Hydroelectric entered into a definitive Agreement and Plan of Merger with CPT Wyndham Holdings Ltd. and CPT Wyndham Sub Ltd., affiliates of NewQuest Capital Partners, and the funds managed by it.

The offer price represents a 57.4 percent premium over the closing price of $2.23 per ADS on September 3, 2013, which was the last trading day before the company announced that it had received a non-binding proposal from CPI Ballpark Investments Ltd, an affiliate of the NewQuest Funds, to acquire all of the company's outstanding ordinary shares not already owned by them.

The consideration to be paid to holders of ordinary shares and ADSs under the merger agreement also represents an increase of 18.2 percent from the original $2.97 per ADS offer price submitted by NewQuest in its September 4, 2013 non-binding proposal letter.

CPT Wyndham Sub will merge with the company, and the company will continue as the surviving corporation and a wholly owned subsidiary of CPT Wyndham Holdings.

NewQuest plans to fund the merger through cash contributions following an equity commitment letter from NewQuest Asia Fund I, L.P. and NewQuest Asia Fund II, L.P. who are the sponsors.

The company's board of directors, acting upon the unanimous recommendation of the special committee formed by the board of directors, unanimously approved the merger agreement and the merger.

The board has resolved to recommend that the company's shareholders vote to authorize and approve the merger agreement and the merger.

The merger is currently expected to close during the first half of 2014.

Weil, Gotshal & Manges is serving as U.S. legal advisors to NewQuest and Conyers Dill & Pearman is serving as its Cayman Islands legal advisor.

CHC rose 3.4 percent on Friday to close at $2.73.