Fortune Oil announced that it has entered into an agreement with Mr. LIU Minghui to form a newly incorporated 50/50 joint venture company, China Gas Group Limited.
LIU Minghui is presently a substantial shareholder in China Gas Holdings (CGH), with many years of experience of developing gas businesses in China. Mr.LIU will inject 200,000,000 shares of CGH into the JV valuing his shares at HK$ 3.50 per share as his contribution while Fortune Oil will contribute its shareholding in CGH plus cash injection amounting to a total of HK$ 700,000,000 into the joint venture. China Gas Group Limited, together with Mr. LIU’s personal shareholding in CGH, will be the single largest combined shareholding in CGH. At its incorporation, the joint venture will have no assets other than the cash and shares in CGH detailed above.
CGH is the largest independent natural gas company in China in terms of city network, serving gas to over 150 cities. It engages principally in the investment, operation and management of city gas pipeline infrastructure, the distribution of natural gas and LPG to residential, commercial and industrial users, construction and operation of oil stations and gas stations, and development and application of natural gas and LPG related technologies in China.
Mr. Tee Kiam Poon, Chief Executive of Fortune Oil , commented:
“ We are excited with this strategic investment and being able to form this joint venture with LIU Minghui. This provides an excellent platform by combining the strengths of both parties to grow our gas business and to develop Fortune Oil into a significant player in the fast expanding China gas market .”
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LNG World News Staff, December 30, 2011; Image: Fortune Oil