HONG KONG, April 14, 2015 /PRNewswire/ -- Blue Sky Power Holdings Limited (or "the Company", together with its subsidiaries, the "Group", HKSE stock code: 6828) announced that the Company has entered into an acquisition agreement with Zhongbang Wealth Equity Investment Fund Management (Beijing) Co. Ltd. ("Zhongbang Wealth") to acquire the beneficiary rights in the principal amount of RMB15 million under the Asset Management Scheme, which is used to finance the construction of a natural gas project in Qujing, Yunan to be managed and operated by Yunnan Jiadao Investment Company Limited ("Yunnan Jiadao"). The full amount of the beneficiary rights will be repurchased by Zhongbang Wealth at an amount of RMB 16.8 million. The Company also entered into an option agreement with Profit Well Limited, who is going to acquire 30.25% effective equity interest in Yunnan Jiadao, pursuant to which the Company agreed to acquire an option to purchase the 30.25% equity interest in Yunnan Jiadao. The consideration for the option is RMB nil and the exercise price will be determined separately between the Company and Profit Well Limited.
Yunnan Jiadao invests in refitting and assembling of natural gas heavy trucks, and the building and operation of natural gas refueling stations for heavy trucks in Quing, Yunnan Province. 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 9 LNG refueling stations and the plant for the refitting and assembling of natural gas heavy trucks in Qujing.
The Group has designated natural gas business as the Group's priority for its future business development, and considered that the five provinces in South Western China (including Guizhou Province, Sichuan Province, Yunnan Province and Chongqing) will be one of the major target locations. The People's Government of Qujing promotes the three-year action plan for "Qujing gasification" and encouraged the use of natural gas to replace other traditional energy supply by accelerating the building and establishment of (i) natural gas network,(ii) LNG storage and supply facilities, and (iii) natural gas refueling stations for vehicles in Qujing. It expected that the use of natural gas will be widely expanded to various vehicles including public transportation and heavy trucks and required all new vehicles to be either oil and natural gas dual fuelled or natural gas fuelled. To support the policy of natural gas usage promotion, there will also be relevant tax benefits, fees exemption and government subsidies for the enterprises or residents with natural gas usage in Qujing.
Mr. Tommy Cheng, Chairman and Executive Director of Blue Sky Power Holdings Limited, said, "In view of the abovementioned 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."
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.
