Green Dragon Gas, a company involved in the production of CBM gas and the distribution and sale of wholesale gas in China, has entered into a strategic transaction to acquire an effective equity interest in Sinoenergy Corporation.
Sinoenergy is expected to provide Green Dragon with incremental access to the midstream and downstream sales infrastructure within niche geographical locations in China.
The structured transaction involves an initial investment of approximately $35m for a minimum equity interest of 33.3% and can be up to 59.3% in the operating business.
Upon conclusion of the current ongoing corporate re-organization and related approvals, which are expected prior to December, the precise equity interest will be concluded.
Until the transaction is completed, Green Dragon has a security interest over all the assets of Sinoenergy and its parent company.