Blue Sky Power Holdings informed that it has conditionally agreed to acquire a company principally engaged in the transportation of CNG and LNG, and 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. The balance of HK$100.5 million will be settled by the allotment and issue of consideration shares, the company said in a statement.
Tommy Cheng, Chairman and Executive Director of Blue Sky Power , said that 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.
He added that 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,” said Cheng.
The group currently owns certain LNG and CNG refueling stations in Yucheng and Jinan of Shandong province.
1 Hong Kong dollar = 0.128939 U.S. dollars
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Image: Blue Sky Power