China LNG Group Ltd has announced that CLNG Tianjin has agreed to invest RMB45.9 million in a company that is involved in the investment, development, management and operation of LNG storage and transportation projects in China.
Once the transaction has been completed, CLNG Tianjin will hold a 51% share in the company. The company will then also officially become a non-wholly owned subsidiary of CLNG Tianjin.
The target company is currently owned by Company A (90%) and Company B (10%).
The completion of the agreement relies on the satisfaction, or failure to satisfy, a number of conditions. If these conditions are not satisfied within a 60-day period after the signing of the capital injection agreement, then CLNG Tianjin holds the right to terminate the agreement.
Should the conditions be met and the agreement completed, then the target company will comprise of five directors. Three of these will be appointed by CLNG Tianjin, whilst Company A and Company B will appoint the remaining two. CLNG Tianjin will also appoint the Chairman of the Board of Directors.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/small-scale-lng/14072016/clng-tianjin-to-invest-in-chinese-lng-storage-and-transportation-company-2749/