Blue Sky Power Holdings Ltd has entered into an acquisition agreement with Zhongbang Wealth Equity Investment Fund Management (Beijing) Co. Ltd. to acquire the beneficiary rights in the principal amount of RMB15 million, under a scheme used to finance the construction of a natural gas project in Qujing, Yunan, China.
The natural gas project will be managed and operated by Yunnan Jiadao Investment Co. Ltd.
Zhongbang Wealth will repurchase the full amount of the beneficiary rights, at a cost of RMB 16.8 million. The company also entered into an option agreement with Profit Well Ltd, which will acquire 30.25% effective equity interest in Yunnan Jiadao.
Yunnan Jiadao invests in refitting and assembling of natural gas heavy trucks, and the building and operation of natural gas refuelling stations for heavy trucks. Yunnan Jiadao has entered into an investment cooperation agreement with the People's Government of Quijing, and was granted the investment project registration certificates in respect of the construction of nine LNG refuelling stations and the plant for the refitting and assembling of natural gas heavy trucks in Qujing.
Tommy Cheng, Chairman and Executive Director of Blue Sky Power, said: "In view of the […] favourable government policies and the natural gas investment opportunity secured by Yunnan Jiadao, the company considered that Yunnan Jiadao should have huge potentials. This acquisition can initiate our cooperation with Yunnan Jiadao and its shareholders and also develop our local network connection and contacts in Yunnan Province, which can enhance the company's ability to identify appropriate potential targets for acquisitions in Yunnan Province in the near future."
Adapted from press release by Katie Woodward
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