China Oil & Gas (HKG:0603) unit buys 81% Taizhou Tongda
[Date:10-30-2009] Source: Infocast News
China Oil and Gas (HKG:0603) announced that its non-wholly-owned subsidiary, China City Natural Gas Co., Ltd (CCNG), has entered into an equity interest transfer agreement with Tongda Energy Private Limited (Tongda) pursuant to which CCNG agrees to purchase from Tongda 81% equity interest in Taizhou Tongda Natural Gas Company Limited (Taizhou Tongda) at a cash consideration of RMB37.066 million ($42.121 million).
The estimated total investment amount for the project in Taizhou Tongda shall be approximately RMB200 million ($227 million).
The transfer agreement was entered into in light of the fact that PetroChina (HKG:0857) has agreed, upon the acquisition of Taizhou Tongda by CCNG, to provide the natural gas supply with not more than 500 million cubic metres per year to Taizhou Tongda Project, which will commence in 2010.
Taizhou Tongda is principally engaged in the construction of natural gas pipelines and operation of natural gas supply projects in Taizhou area, the PRC. Taizhou Tongda is now in the process of constructing long natural gas pipelines of 90 kilometers between Sihang, Jiangyan and Dainan of the PRC, which has been approved by the Development and Reform Commission of Jiangsu Province.
Upon completion of the acquisition, Tongda shall have the right to dispose of its remaining 19% equity interest in Taizhou Tongda to CCNG at any time and CCNG shall be obliged to purchase such 19% equity interest from Tongda at a consideration of RMB8.695 million (approximately $9.88 million).
Quelle: www.chinesestock.org/show.aspx?id=58263&cid=28
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