Blue Sky Power Holdings Ltd has announced that, on 11 December 2015, the Company conditionally agreed to acquire the entire issued share capital of Fox Smart Ltd. The consideration is for HK$136 million.
Through its subsidiaries Fox Smart Ltd. is principally engaged in the investment of LNG refueling stations for vehicles and vessels and LNG trading business in the PRC. Upon the completion of reorganisation, it will hold 40% equity interest in Hainan Zhongyou Jiarun through Shenzhen Jiashi. Hainan Zhongyou Jiarun Group shall become associated companies of Fox Smart Ltd. The Hainan Zhongyou Jiarun Group currently (1) operates two LNG refueling stations for vehicles and one gasification station using LNG in Hainan Province; (2) operates three LNG refueling stations for vehicles and two movable LNG refueling equipment for vehicles, which will be converted into LNG refueling stations, in Hefei, Anhui Province; (3) engages in LNG trading business in Anhui Province; and (4) constructs one LNG refueling station for vessels in Wuhu, Anhui Province.
Mr. Tommy Cheng, Chairman and Executive Director of Blue Sky Power Holdings Ltd, said: "The Proposed Acquisition, if proceeded, will help the Group to develop its business in LNG refueling stations for vehicles and vessels, as well as its trading business. The Proposed Acquisition is expected to enable the Group to expand its market share in Hainan Province and broaden its business focus from existing CNG refueling stations to LNG refueling stations."
Meanwhile, in 2014, the Hainan Zhongyou Jiarun Group obtained a government approval to construct a LNG refueling station for vessels in Wuhu, Anhui Province. The station is anticipated to be completed by end of 2016. The Directors believe that the Proposed Acquisition will broaden its income streams by supplying LNG to LNG vessels. Also, the Proposed Acquisition enables the Group to carry out its development plan and readily tap into the LNG trading business operated by the Hainan Zhongyou Jiarun Group in Anhui Province.
Edited from press release by Angharad Lock
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11122015/blue-sky-power-proposes-to-expand-lng-business-in-hainan-1782/