Beijing Gas Blue Sky will acquire 29% equity interest in PetroChina Jingtang LNG Co., Ltd. and possibly apply for a whitewash waiver

HONG KONG, CHINA – Media OutReach – 3 November 2017 – Beijing Gas Blue Sky Holdings Limited (“the Company” or “Beijing Gas Blue Sky”, together with its subsidiaries, the “Group”, HKSE: 6828) is pleased to announce that, the Company, Beijing Gas Group Co., Ltd. (“Beijing Gas Group”) and Beijing Gas Company Limited (“Beijing Gas HK”), an indirect wholly-owned subsidiary of Beijing Gas Group, entered into a memorandum of understanding which sets out the proposal under which the Company intends to acquire the entire issued capital of Beijing Gas JingTang Company Ltd. (the “Target Company”) from Beijing Gas HK. The Target Company is expected to own 29% equity interest in PetroChina Jingtang LNG Co., Ltd. (“PetroChina Jingtang”) through its wholly-owned subsidiary upon completion of its acquisition of the aforesaid 29% equity interest under a signed share transfer agreement.

 

PetroChina Jingtang is incorporated with limited liability in Tangshan City, Hebei Province, the People’s Republic of China (the “PRC”). It is principally engaged in provision of port facilities for vessels of liquefied natural gas; provision of cargo handling services, warehousing and loading services of liquefied natural gas within the port area; receiving, storage and re-gasification of liquefied natural gas.

 

If the Proposed Acquisition materializes, the consideration for the Proposed Acquisition is expected to be no more than RMB1,008 million and the Company would satisfy the consideration through the issuance of new shares of the Company to Beijing Gas HK or its nominee(s). The price for the Consideration Shares is currently expected to be HK$0.50 per Consideration Share, and will be determined by the parties upon entering into the definitive agreement.

 

Beijing Gas HK is a substantial shareholder of the Company holding approximately 26.91% of the issued shares of the Company as at the date of this announcement. If the Proposed Acquisition materializes, it would result in Beijing Gas HK holding more than 30% voting rights of the Company. Accordingly, completion of the Proposed Acquisition would be conditional upon, among other things, the grant of a whitewash waiver by the Executive.

 

In addition, the Company has completed the acquisition of two natural gas projects in Shanxi Province, including Shanxi Minsheng Natural Gas Co., Ltd. (“Shanxi Minsheng”) and Yongji Minsheng Natural Gas Co., Ltd. (“Yongji Minsheng”).


Mr. Tommy Cheng, Co-Chairman and Executive Director of the Group said that “We expect that the Proposed Acquisition will further secure the source of supply of natural gas to Beijing Gas Blue Sky. It represents strategic importance for the Group through improving the security for gas supply, as well as enhancing the Group’s industry position in the gas distribution sector.”


About Beijing Gas Blue Sky Holdings Limited

Beijing Gas Blue Sky Holdings Limited (“Beijing Gas Blue Sky”, HKSE stock code: 6828) is an integrated natural gas provider, distributor and operator, with an emphasis on the midstream and downstream natural gas development. Our natural gas business includes: (i) construction and operation of compressed natural gas (“CNG”) and liquefied natural gas (“LNG”) refueling stations for vehicles; (ii) construction of natural gas pipelines and operation of city gas projects by providing piped gas; (iii) direct supply of LNG to end-users; and (iv) trading and distribution of CNG and LNG.

 

The Group has adapted to the “One Belt One Road” policy, and focus on operating and investing natural gas business. The Group is actively expanding its business development and distribution, as well as continues to gradually expanding the scale of operations. Currently, the Group has business presence in several provinces in Northeast China, East China, Central South China and Southwest China, including Liaoning Province, Shandong Province, Anhui Province, Zhejiang Province, Hubei Province, Guizhou Province, Sichuan Province and Hainan Province, etc. The Group is committed to its vision: “develop clean energy, enhance customer value, create a beautiful blue sky”. In the future, it will continue to actively investing and developing natural gas business, as well as participating in the development of natural gas industry value chain.