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 an 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.
Yangkan Chong, CEO of China New Energy, said: “Our acquisition of Zhanhua Jiutai Gas allows us to expand our geographic footprint to a very promising market in the Shandong Province of China.
“This acquisition is 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.”
China New Energy is a vertically integrated natural gas company engaged in 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 China.
