HONG KONG, CHINA - Media OutReach - 28 December 2017 - Beijing Gas Blue Sky Holdings Limited ("the Company" or "Beijing Gas Blue Sky", together with its subsidiaries, the "Group", HKSE: 6828) is pleased to announce that, the Company entered into the Acquisition Agreement with Beijing Gas HK (an indirect wholly-owned subsidiary of Beijing Gas Group) and Beijing Gas Group, pursuant to which the Company has conditionally agreed to acquire all of the issued share capital of the Target Company. The Consideration for the Acquisition is RMB1,008 million (equivalent to approximately HK$1,204 million), which shall be satisfied by the issuance by the Company of 2,408 million Consideration Shares at the Issue Price of HK$0.50 per Consideration Share.
Beijing Gas HK owns approximately 26.87% of the issued share capital of the Company. Immediately upon completion of the Acquisition, Beijing Gas HK will hold approximately 41.24% of the issued share capital of the Company as enlarged by the issuance of the Consideration Shares.
The Target Company is a wholly-owned subsidiary of Beijing Gas HK and it indirectly owns 29% equity interest in PetroChina Jingtang. PetroChina Jingtang is also owned by PetroChina Kunlun Gas Co., Ltd. and Hebei Natural Gas Co., Ltd. as to 51% and 20% respectively. It 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.
Based on the unaudited accounts of PetroChina Jingtang prepared in accordance with International Financial Reporting Standards, it recorded a net profit of approximately RMB436.72 million for the nine months ended 30 September 2017 and a net profit of approximately RMB168.95 million for 2016. PetroChina Jingtang gasified approximately 2.86 billion cubic meters of natural gas during the nine months ended 30 September 2017 and approximately 2.49 billion cubic meters of natural gas in 2016.
Mr. Tommy Cheng, Co-Chairman and Executive Director of the Group said that "Currently, most of the gas distributors and private enterprises in the PRC are unable to obtain the right to use LNG terminals. 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. Looking ahead, coal-to-gas and clean heating will be the key opportunities of the natural gas industry. We expect that the Acquisition would further promote the Group's strategic development of the entire business chain of liquefied natural gas, create synergies among the Group's different business segments and enhance the Group's competitiveness and overall profitability."
About Beijing Gas Blue Sky Holdings Limited
Beijing Gas Blue Sky Holdings Limited ("Beijing Gas Blue Sky", HKSE stock code: 6828) is an integrated natural gas provider, distributor and operator, with an emphasis on the midstream and downstream natural gas development. Our natural gas business includes: (i) construction and operation of compressed natural gas ("CNG") and liquefied natural gas ("LNG") refueling stations for vehicles; (ii) construction of natural gas pipelines and operation of city gas projects by providing piped gas; (iii) direct supply of LNG to end-users; and (iv) trading and distribution of CNG and LNG.
The Group has adapted to the "One Belt One Road" policy, and focus on operating and investing natural gas business. The Group is actively expanding its business development and distribution, as well as continues to gradually expanding the scale of operations. Currently, the Group has business presence in several provinces in Northeast China, East China, Central South China and Southwest China, including Liaoning Province, Jilin Province, Shandong Province, Shanxi Province, Anhui Province, Zhejiang Province, Hubei Province, Guizhou Province, Sichuan Province and Hainan Province, etc. The Group is committed to its vision: "develop clean energy, enhance customer value, create a beautiful blue sky". In the future, it will continue to actively investing and developing natural gas business, as well as participating in the development of natural gas industry value chain.
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