The resolutions also include the proposed issue of Consideration Shares, and the Whitewash Waiver, were duly passed at the SGM.
According to the Acquisition Agreement, the Group agreed to acquire all of the issued share capital of a wholly-owned subsidiary of Beijing Gas HK, which indirectly owns 29% equity interest in PetroChina Jingtang.
The Consideration for the Acquisition is RMB1,008m ($158m) (HK$1,204m). The PetroChina Jingtang is principally engaged in provision of port facilities for vessels, provision of cargo handling services, warehousing and loading services within the port area, and receiving, storage and re-gasification of liquefied natural gas.
The liquefied natural gas receiving terminal of PetroChina Jingtang, located in Caofeidian Industrial Zone, Tangshan City, Hebei Province, is an important natural gas supply facility in North China. This receiving terminal consists of port project, receiving terminal project (with a planned handling capacity of 10 million tons per year) and out-terminal pipelines, with a land area of approximately 48 hectares and sea area of approximately 135 hectares.
Imported liquefied natural gas is gasified by the receiving terminal and transmitted to the Yong Tang Qin pipeline, and then to Shaanxi-Beijing second line pipe network in the west and Northeast pipe network in the east. The receiving terminal is an important supporting facility for the natural gas pipe network in Beijing, Tianjin and North China.
In addition, PetroChina Jingtang also supplies liquefied natural gas to its surrounding areas such as Tangshan, Chengde, Tianjin and Qinhuangdao via various distributors. PetroChina Jingtang not only safeguards the supply of natural gas in Beijing, but also plays a crucial role in further promoting the ‘coal-to-gas’ reform in Beijing-Tianjin-Hebei region, optimizing the comprehensive use of natural gas, and providing more adequate and reliable natural gas supply.
Beijing Gas Blue Sky Group co-chairman and executive director Tommy Cheng said: “We expect that the Acquisition will further secure the source of supply of natural gas to Beijing Gas Blue Sky and enhance our bargaining power of imported LNG, laying a solid foundation for the Group’s LNG import business. 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.”
Source: Company Press Release
