Beijing Gas Blue Sky Holdings Limited (Beijing Gas Blue Sky) is pleased to announce that, the company, Beijing Gas Group Co., Ltd. (Beijing Gas Group) and Beijing Gas Company Limited (Beijing Gas HK), an indirect wholly-owned subsidiary of Beijing Gas Group, entered into a memorandum of understanding which sets out the proposal under which the company intends to acquire the entire issued capital of Beijing Gas JingTang Company Ltd. from Beijing Gas HK.
The target company is expected to own 29% equity interest in PetroChina Jingtang LNG Co., Ltd. (PetroChina Jingtang) through its wholly-owned subsidiary upon completion of its acquisition of the aforesaid 29% equity interest under a signed share transfer agreement.
PetroChina Jingtang is incorporated with limited liability in Tangshan City, Hebei Province, the People's Republic of China. It is principally engaged in provision of port facilities for vessels of LNG; provision of cargo handling services, warehousing and loading services of LNG within the port area; receiving, storage and re-gasification of LNG.
If the proposed acquisition materialises, the consideration for the proposed acquisition is expected to be no more than RMB1 billion and the company would satisfy the consideration through the issuance of new shares of the company to Beijing Gas HK or its nominee(s). The price for the consideration shares is currently expected to be HK$0.50 per consideration share, and will be determined by the parties upon entering into the definitive agreement.
Beijing Gas HK is a substantial shareholder of the company holding approximately 26.91% of the issued shares of the company as at the date of this announcement. If the proposed acquisition materialises, it would result in Beijing Gas HK holding more than 30% voting rights of the company. Accordingly, completion of the proposed acquisition would be conditional upon, among other things, the grant of a whitewash waiver by the executive.
In addition, the Company has completed the acquisition of two natural gas projects in Shanxi Province, including Shanxi Minsheng Natural Gas Co., Ltd. and Yongji Minsheng Natural Gas Co., Ltd..
Mr Tommy Cheng, Co-Chairman and Executive Director of the Group said that "We expect that the Proposed Acquisition will further secure the source of supply of natural gas to Beijing Gas Blue Sky. It represents strategic importance for the group through improving the security for gas supply, as well as enhancing the group's industry position in the gas distribution sector."
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03112017/beijing-gas-blue-sky-to-acquire-share-of-petrochina-jingtang-lng/