Shanghai-listed Zhejiang Southeast Electric Power Co Ltd, said in a statement on Thursday that it plans to swap its US dollar-denominated B shares for renminbi-denominated shares trading on the exchange's main A-share board.
The move is the first B-to-A conversion plan approved by the China Securities Regulatory Commission.
Trading of ZSEP shares was suspended on Nov 21.
Zhejiang Zheneng Electric Power Co Ltd ?? ZSEP's largest shareholder ?? will issue shares in the A-share market to swap for ZSEP's B shares.
ZSEP will exit the B-share market after the operation. ZZEP's 39.9 percent stake in ZSEP will not be converted.
The price of ZZEP's shares expected to be issued is between 5.71 yuan ($0.90) per share to 6.63 yuan per share. ZSEP's B shares price is about $0.552 or 4.9 yuan per share.
Analysts said the move sets a significant precedent for other companies looking to exit the illiquid B-share market, and is another option in addition to the B-to-H conversion plan established in 2012.
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