China New Energy Announces Acquisition of Zhanhua Jiutai Gas Company
Group Company (OTC Bulletin Board: CNER) (“China New Energy” or the “Company”),
a vertically integrated natural gas company engaged in the development of
natural gas distribution networks, and the distribution of natural gas to
residential, industrial, and commercial users in small and medium sized cities
in
Ltd. (“Qinhuangdao”), the Company’s indirect wholly-owned subsidiary, entered
into an equity purchase agreement (the “Agreement”) to acquire all of the
outstanding equity interest of Zhanhua Jiutai Gas Co., Ltd. (“Jiutai”) for
16.5 million
The purchase price is payable in three installments. The first installment
of 58% of the total purchase price is payable within 13 business days of the
date of the Agreement. The second installment consists of 36% of the total
purchase price and is payable upon Jiutai passing a comprehensive inspection
of all of its gas stations and pipe network and obtaining a passed inspection
report issued by the supervisory department. The third and final installment
is for 6% of the purchase price and will be paid within the twelfth month
after the completion of delivery of the transferred equity.
Founded in 2007 and headquartered in Zhanhua County,
Jiutai is primarily engaged in the business of natural gas supply,
construction and development of gas pipeline networks in urban areas. On
25, 2007
the local government to construct and develop a gas pipeline network and
supply gas in Zhanhua County.
“Our acquisition of Zhanhua Jiutai Gas Company allows us to expand our
geographic footprint to a very promising market in the
in-line with our strategy of expanding our business into under-penetrated,
growing small- and medium-sized cities where we can enter into favorable
franchise agreements with local governments that grant us long-term exclusive
rights to develop the local natural gas distribution network and supply
natural gas in their area.”
About China New Energy Group Company
China New Energy Group Company (“China New Energy” or the “Company”) is a
vertically integrated natural gas company engaged in the development of
natural gas distribution networks, and the distribution of natural gas to
residential, industrial, and commercial users in small and medium sized cities
in
it charges its customers for interconnecting to pipelines in its natural gas
distribution networks, and fees for natural gas usage. The Company currently
has exclusive natural gas distribution rights for Acheng, Dashiqiao, and
Nandaihe, three cities located in
please visit http:// www.cnegc.com/ .
Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995: Any statements set forth above that are not historical facts are
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ materially from those in the forward-looking
statements. Such factors include, but are not limited to, the Company’s
ability to access natural gas for distribution, and ability to identify and
develop operational locations under favorable terms, changes in natural gas
pricing mechanism imposed by the Chinese government, changes in the regulatory
environment and future national or regional economic and competitive
conditions, and other factors detailed from time to time in the Company’s
filings with the United States Securities and Exchange Commission and other
regulatory authorities. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
For more information, please contact:
Company Contact:
Eric Yu, Chief Financial Officer
Email: ericyu@cnegc.com
Web: http://www.cnegc.com
Investor Relations Contact:
CCG Investor Relations
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Webs: http://www.ccgirasia.com
SOURCE China New Energy Group Company