(Yicai) Aug. 4 -- China Shenhua Energy, a coal and electricity producer, has suspended trading of its shares ahead of a major asset acquisition that is expected to reshape the coal industry’s supply chain.

The trading suspension is expected to last no more than 10 trading days, the Beijing-based company announced on Aug. 1. The shares [SHA: 601088] closed at CNY37.56 (USD5.23) each that day, valuing Shenhua Energy at about CNY723 billion (USD101 billion).

The company will acquire coal, pithead power generation, coal-to-oil, coal-to-gas, and coal chemical-related assets from 13 subsidiaries of its controlling shareholder China Energy Investment Corporation, including Xinjiang Energy Group, Wuhai Energy, and Shaanxi Shenyan Coal, it said.

The asset restructuring will ensure supplies for the coal mining industry, enhance the clean conversion capabilities of coal-to-oil and chemical processing, make energy use more efficient, and build an independent logistics network that will boost the effectiveness of moving coal from western to eastern China, according to analysts.

A CEIC spokesperson said the move aims to enhance Shenhua Energy’s strategic coal reserves and integrated operational capabilities, address the issue of coal development business overlap with its controller, and support China in deepening reform of the energy sector and establishing a new coal production, supply, storage, and marketing system.

By creating a system to coordinate production across regions, Shenhua Energy will be better equipped to handle seasonal and structural shifts in energy demand in key user areas, CEIC said, adding that during critical periods, such as peak summer and winter, a unified management system will help respond quickly to national needs and strengthen energy security.

Established in 2004, Shenhua Energy had total assets of CNY658.1 billion (USD91.6 billion) at the end of last year. CEIC was formed in 2017 from the merger of leading power producer China Guodian and mining and energy giant Shenhua Group.

Editor: Futura Costaglione