New Times Energy Corporation Limited has announced that it plans to sell its downstream natural gas business to Blue Sky Power Holdings Limited.
New Times Energy agreed to sell the entire issued share capital of Shine Great Investments Limited, an indirect subsidiary of New Times Energy, to Goldlink Capital Limited, a subsidiary of Blue Sky Power.
CNG and LNG stations
Shine Great owns and operates CNG and LNG gas stations, and supplies natural gas to industrial parks and household communities in Jiangsu and Guizhou provinces.
The total consideration is convertible bonds issued by Blue Sky for a principal amount of HK$ 213,045,259 and cash payment of approximately HK$ 17,000,000 to New Times Energy. Blue Sky Power will also pay approximately HK$ 37,800,000 as subscription consideration of cash to Shine Great Group.
New Times Energy will cease to engage in the downstream business in China and Shine Great will be wholly owned by Blue Sky Power upon completion of the series of transaction.
Stewart Cheng, Chairman and Executive Director of New Times Energy, commented: "Disposal of Shine Great provides a good opportunity for New Times Energy to realise its value by focusing on the expansion of its upstream oil and gas business. The net proceed of approximately HK$ 229,000,000 will be used as general working capital and funding of investment when suitable opportunities arise."
Hung Tao, Executive Director of Blue Sky Power, added: "We have been exploring different business opportunities to boost the business performance of Blue Sky Power, and thus have ventured into the natural gas distribution business in PRC since 2013. The acquisition, if [it] materialises, will further establish our market presence and strengthen our existing business portfolio of natural gas business operations in PRC. We believe the acquisition is in the interests of our shareholders as a whole, and will further enable us to expand our natural gas business operation in PRC."
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/08102014/new-times-energy-sells-downstream-business-1560/