China Gas has officially confirmed the acquisition of Richland Gas, a move that was previously reported by several media outlets. The company announced today that it will pay US$400 million (approximately HK$3.1 billion) in cash to acquire the gas distribution and energy-related assets of Richland Gas. This strategic move is expected to strengthen China Gas’s position in the natural gas sector in China.
The transaction was formalized through a share purchase agreement signed on December 16. According to the terms, Zhongfang may issue up to 250 million consideration shares to Fudi Gas, subject to shareholder approval at a special general meeting. These shares would represent approximately 5.19% of China Gas's enlarged issued share capital, signaling a significant step in the integration process.
Richland Gas operates across multiple segments of the gas industry, including gas distribution, coalbed methane (CBM), and liquefied natural gas (LNG) marine refueling. Its operations span upstream, midstream, and downstream activities, making it a well-rounded player in the energy market. As of December 31, 2011, Richland Gas had a net asset value of around US$194 million, according to consolidated financial statements.
Both managing directors of China Gas, Liu Minghui and Fudi China, hold a 50% stake in CGGL, which owns 419,478,000 shares. Meanwhile, Guo Gas holds approximately 9.19% of the total issued shares, indicating a diversified ownership structure.
In response to the announcement, China Gas suspended trading on the stock exchange yesterday morning. The company has since stated that it will resume trading this morning, as the details of the acquisition are finalized and disclosed to investors.
This acquisition marks another milestone in China Gas’s ongoing expansion strategy, aiming to consolidate its presence in the fast-growing energy sector in China. Analysts believe that the deal could enhance operational efficiencies and open new revenue streams for the group.Ufo Highbay Emergency Kit,Emergency Electric Power Source,Emergency Light Power Supply,Emergency Driver For Led Tube
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