HONG KONG, Aug. 10, 2015 /PRNewswire/ --Blue Sky Power Holdings Limited (or "the Company", together with its subsidiaries, the "Group", HKSE stock code: 6828) announced that, on 10 August 2015 (after trading hours), the Group conditionally agreed to acquire the entire equity interest of a Target Company, the target company and its subsidiaries which are principally engaged in: (i) the transportation of CNG and LNG; (ii) the wholesales of CNG and LNG; and (iii) the operation of L-CNG refueling stations in Shandong province in the PRC.
The total consideration is HK$158 million, of which HK$17.5 million will be settled by cash; HK$40 million will be settled by the Promissory Note. And the balance of HK$100.5 million will be settled by the allotment and issue of Consideration Shares.
Mr. Tommy Cheng, Chairman and Executive Director of Blue Sky Power Holdings Limited, said, "As the Company is exploring the opportunities to identify certain overseas LNG sources with competitive pricing, which will allow the Group to venture into CNG and LNG trading business in the PRC, the proposed acquisition will enable the Group to realize its development plan. The CNG and LNG transportation fleet currently owned by the Target Group can allow the Company to have its own logistics solutions in conducting CNG and LNG trading business, which usually requires the transportation of CNG and/LNG from the gas sources to the customers. Also, the Group currently owns certain LNG and CNG refueling stations in Yucheng and Jinan of Shandong province. The proposed acquisition provides an opportunity for the Group to expand its market share in the natural gas industry in Shandong province and offers synergy in the area of gas procurement, distribution channels and management of daily operation of the refueling stations."
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.
