Natural gas distribution company China New Energy Group has signed an agreement to acquire the remaining 51% of Qinhuangdao Chensheng, a natural gas project operator in Nandaihe, northeast China. China New Energy indirectly owns a 49% stake in Qinhuangdao Chensheng.
Under the terms of the agreement, China New Energy has agreed to purchase 51% of the outstanding equity of Chensheng Gas from 17 sellers for an aggregate purchase price of approximately $1.84 million.
Following the consummation of the transaction, the company will own 100% of the equity of Chensheng Gas. The transaction is expected to close in about a month.
Jiaji Shang, CEO of the China New Energy Group, said: We are pleased to close this acquisition. This new addition will expand our market share in north China, as we target second and third tier emerging cities around Bohai Bay economic development zone, which includes Tianjin, and the Hebei, Liaoning and Shandong provinces.
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