The purchaser agreed to purchase, an aggregate of 228 million Sale Shares at the Sale Price, which is the same as the Subscription Price
Binhai Investment introduces Sinopec Great Wall Gas as a strategic investor. (Credit: Adam Radosavljevic from Pixabay)
Binhai Investment Company Limited (“Binhai Investment” or the “Company”, stock code: 2886.HK) is pleased to announce that Company (as issuer) entered into the Subscription Agreement with Sinopec Great Wall Gas Investment Co., Ltd (“Great Wall Gas”, as subscriber). The subscriber agreed to subscribe for an aggregate of 178 million Subscription Shares, at the subscription Price of HK$1.33. The Subscription Shares represent approximately 13.14% of the issued share capital of the Company as enlarged by allotment and issue of the Subscription shares.
On the same day, TEDA Hong Kong Property Company Limited (“TEDA HK”, as vendor), being the controlling shareholder of the Company, and Great Wall Gas(as purchaser) entered into the Share Purchase Agreement. The purchaser agreed to purchase, an aggregate of 228 million Sale Shares at the Sale Price, which is the same as the Subscription Price. The Sale Shares represent approximately 16.85%. Immediately after completion of the Subscription and the Disposal, TEDA HK, a controlling shareholder of the Company, holds 35.43% equity and Great Wall Gas holds 29.99% equity as second largest shareholder. Great Wall Gas is the only platform and wholly-owned subsidiary of Sinopec Corporation, which is engaged in natural gas terminal utilization investment. Its main investment scope includes, but is not limited to, the investment and operation of clean energy projects such as natural gas pipeline, natural gas distributed energy and urban gas.
Binhai Investment considers that the company focuses on the construction of gas pipeline networks, gas sales and installation services, Sinopec Corp and its subsidiaries have access to petroleum and natural gas resources. Therefore, it is expected that by introducing Great Wall Gas as a strategic investor of the Company, both sides will achieve supply chain synergy. To solidify further business cooperation, the Group may conduct further negotiations with Sinopec Corp and/or its subsidiaries and enter into further business agreements with them in the future.
Source: Company Press Release