PetroAsian Energy Holdings Ltd has signed a non-legally binding Memorandum of Understanding (MoU) with China LNG Corp. Ltd in relation to possible transactions including subscription of new shares in any member of China LNG Group or cooperation with the China LNG Group in certain LNG businesses or a combination of both.
Under the MOU, it is proposed that PetroAsian Energy Holdings will cooperate with China LNG in developing the LNG businesses in the PRC and/or to subscribe for such number (the exact number and percentage of which will be subject to further negotiation between the company and China LNG) of new shares in China LNG or its subsidiaries.
The consideration for the Possible Transactions will be determined by further negotiations between the company and China LNG.
Exclusivity and binding effect
As part of the agreement, China LNG will not negotiate with any party for the Possible Transactions within six months from the date of the MOU (or such later date as the parties thereto shall agree).
In a statement released on its website, PetroAsian Energy Holdings Ltd emphasised that no binding agreement in relation to the Possible Transactions has been entered into as at the date of this announcement. As such, the Possible Transactions may or may not proceed.
Further announcement(s) in respect of the Possible Transactions will be made by the company in the event when any Formal Agreement has been signed.
Adpated from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/24062014/petroasian_and_china_lng_sign_non-binding_mou_835/