Fortune Oil is pleased to announce that it has entered into an agreement with Everthriving Investment Group (“Everthriving Investment”) to acquire 65% of the share capital of 3 of its subsidiaries.
Everthriving Investment is a privately owned Chinese LNG and Natural Gas business. The total consideration payable for all 3 subsidiaries is an estimated initial payment of RMB 104.6 million (£9.71 million) and deferred payment of RMB 50 million (£4.64 million).
One of the subsidiaries made a net profit of RMB 23.1 million (£2.14 million) on turnover of RMB 40.1 million (£3.72 million) in its last financial year.
The acquisitions will be effected via a newly incorporated wholly-owned subsidiary, Fortune Gas Technology Co., Ltd, and will be funded from the Company’s existing resources.
These acquisitions represent a key development in the expansion of Fortune Oil’s natural gas business. Everthriving’s subsidiary businesses provide the Company with a broader portfolio of LNG refuelling facilities, increased LNG transportation capabilities with the addition of 50 LNG trucks and improved technical capabilities in natural gas processing.
Highlights
– Subscription for 65% of the shares of Beijing Everthriving Energy Technology Co., Ltd. (“Everthriving Energy Technology”), a company specialising in diesel oil to LNG “dual fuel” conversion technology, for an estimated initial payment of RMB 37.1 million (£3.44 million). The Company is targeting completion by 30 September 2010.
– Acquisition of 65% of Jinzhou Everthriving Logistics Co., Ltd. (“Everthriving Logistics”), a company specialising in the supply of LNG, for an estimated RMB 65 million (£6.04 million).The Company is targeting completion by 31 October 2010.
– Acquisition of 65% of Jilin Everthriving Carbon Dioxide Plastic Technology Co., Ltd (“Everthriving Plastics Technology”), a company specialising in natural gas processing, for an estimated RMB 2.5 million (£0.23 million). The Company is targeting completion by 31 March 2011.
– An additional deferred payment of RMB 50 million (£4.64 million) payable to Everthriving Investment upon certain material and long term milestones being met.
– Upon completion the Company will be entitled to 65% of the profits and capital of all 3 companies and will be entitled to appoint a majority of the board of directors and general managers.
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Source: Fortune Oil, September 1, 2010