HONG KONG, Oct. 10, 2014 /PRNewswire/ -- Blue Sky Power Holdings Limited (or "the Company", together with its subsidiaries, the "Group", HKSE stock code: 6828) is pleased to announce that it has entered into a Sales and Purchase Agreement on 9 October 2014 through its non-wholly-owned subsidiary, Shenzhen Warwick Ho Energy Company Limited, to acquire 55% interest in a company engaged in a natural gas project in Huanggang City, Hubei Province, the PRC, for a total consideration of RMB10 million.
The total consideration will be satisfied by the issue of 3,167,669 Consideration Shares at the price of HK$3.99 per Consideration Share.
The target company of the acquisition, Huanggang City Wan Fu Trading Company Limited, is engaged in implementation and utilization of natural gas project in Huanggang City, Hubei Province. It entered into a franchise operation agreement with the Huanggang City DRC for a term of 30 years. It was granted the rights to invest and operate the natural gas business making use of boiled off gas, to distribute natural gas to the enterprises in the Huanggang City Chemical Industrial Park and the citizens located in Chen Ce Lou Town, both located in Huanggang City.
Huanggang City Wan Fu Trading Company Limited will utilize two gas sources: (1) a natural gas liquefaction facility located in Huanggang City with production capacity of approximately 5 million cubic meters per day, operated by KunLun Energy Company Limited. It has agreed that the Huanggang City Wan Fu Trading Company Limited can procure the boiled off gas from its natural gas liquefaction facility, in which is expected to amount to approximately 400,000 cubic meter per day; and (2) Huanggang City Wan Fu Trading Company Limited signed a letter of intent with PetroChina Company Ltd ("PetroChina"), in which PetroChina agreed to supply natural gas to Huanggang City Wan Fu Trading Company Limited.
Mr. Hung Tao, Executive Director of Blue Sky Power Holdings Limited, said, "the Company has ventured into the natural gas industry in the PRC in 2013, and has since entered into agreements to acquire natural gas assets in Shandong, Jiangsu and Liaoning. We believe that the acquisition, if materializes, will enable the Company to expand our natural gas portfolio in the PRC and diversity our revenue stream in the future."
Blue Sky Power Holdings Limited
Blue Sky Power Holdings Limited (HKSE stock code: 6828) is engaged in the natural gas distribution business in the PRC since late 2013 and has entered into agreements to acquire natural gas business in the PRC, including Shandong, Jiangsu, Hubei, Hainan, Sichuan and Liaoning Provinces.
