China New Energy Announces Acquisition of Fuzhou City Lean Zhongran Gas Inc. and Wuyuan County Zhongran Gas Inc.
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
Company’s wholly-owned subsidiary, entered into an equity purchase agreement
to acquire all of the outstanding equity interest of Fuzhou City Lean Zhongran
Gas Inc.(“Lean Zhongran”) and Wuyuan County Zhongran Gas Inc. (“Wuyuan
Zhongran”) for
million
both companies is payable in three installments based on the satisfaction of
various mutually agreed upon closing conditions.
Founded in 2006 and based in the
Zhongran and Wuyuan Zhongran are primarily engaged in the business of natural
gas supply and the construction and development of gas pipeline networks in
urban areas. In 2006, both companies obtained 30-year exclusive operating
licenses from their local governments to construct and develop gas pipeline
networks and supply gas in their respective counties.
“We are pleased to expand our business to
of major developing regions in central
Executive Officer. “With these two additional acquisitions, we are continuing
to execute on our growth strategy of expanding into under-penetrated, growing
small- and medium-sized cities in
exclusive agreements with local governments to develop natural gas
distribution networks 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
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
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
Tel: +1-646-213-1916
Email: athan.dounis@ccgir.com
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
SOURCE China New Energy Group Company