Beijing Jingneng Clean Energy (HKG:0579) will sell a 12.1% stake in a subsidiary to Jingxi Power Generation in exchange for industrial land, which had been previously leased to accommodate the company's assets, according to a bourse filing on Wednesday.

The company said it bought the land, located in Beijing and valued at 279.5 million yuan, in order to proceed with construction for its waste heat utilization project, which would not have been otherwise permitted under its previous arrangement with Jingxi.

Jingxi Power was issued 141.1 million new shares in the subsidiary, and the company did not receive cash proceeds from the transaction.

Both Jingxi and Jingneng are tied to Beijing Energy Holding, the holding and controlling entity of the companies.