China Resources Gas eyes joint venture in Ningbo

28 December 2011 08:41  [Source: ICIS news]

GUANGZHOU (ICIS)--China Resources Gas Investment (CR Gas Investment) has entered into an agreement with Ningbo Urban Construction to form a joint venture to operate gas business in Ningbo, parent company CR Gas said late on Tuesday.

Under the agreement signed on 26 December, CR Gas Investment, a wholly owned subsidiary of CR Gas, would acquire a 49% equity interest of Ningbo Xingguang Gas.

Ningbo Xingguang Gas, currently held wholly by Ningbo Urban Construction, would then be converted into a joint venture of CR Gas Investment and Ningbo Urban Construction, with interest of 49% and 51%, respectively, CR Gas said in a statement to the Hong Kong Stock Exchange.

It has not been decided how much CR Gas Investment would pay for the acquisition while an independent asset appraisal of Ningbo Xingguang Gas has not been finalised, the statement said.

The proposed total investment of the joint venture would be no more than yuan (CNY)4bn (632m), it added.

The joint venture, to be established in or around June 2012, is proposed to engage primarily in gas distribution as well as construction and operation of piped gas facilities in Ningbo city, according to the statement.

CR Gas is principally engaged in city gas distribution business including piped natural or petroleum gas distribution and operating CNG (compressed natural gas) filling stations in China.

($1 = CNY6.33)

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By: Fanny Zhang
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