According to the agreement, Sino Gas will provide RMB30 million to cover early-stage expenses in the conversion of Baoding Gas from a government utility to a state-owned enterprise. Sino Gas plans to acquire Baoding Gas after this conversion is complete, and the RMB30 million spent by the company will become part of the acquisition cost.
Yu-chuan Liu, president and CEO of Sino Gas, said: This potential acquisition will allow us to expand our natural gas distribution network to one of the most populous cities in China. Although we are still a few steps away from the final acquisition of Baoding Gas, we believe that the signed framework agreement is evidence of our capability to operate nationwide and become a leading distributor of natural gas in China.
