Source: Media Outreach
Plans to Acquire 51% Equity Interest in Shandong Pan-Asia
To Invest in State Key Projects – Yantai Xigang LNG Projects
Enters into Potential Financing Agreement with Beijing Qinglu Zhongbing
HONG KONG SAR – Media OutReach – 12 October 2021 – China Oil Gangran Energy Group Holdings Limited (“China Oil Gangran” or the “Company”, together with its subsidiaries, the “Group”, SEHK stock code: 8132), which has received shareholder approval to be renamed “Century Energy International Holdings Limited”, announces two strategic cooperation agreements in relation to business development and financing arrangement. With respect to business development, on 10 October 2021, the Group entered into a non-legally binding strategic cooperation framework agreement (the “Framework Agreement”) with Yantai Yindu Industry Co., Ltd. (“Yantai Yindu”) and Shandong Pan-Asia International Energy Distribution Center Co., Ltd. (“Shandong Pan-Asia”) which will result in the acquisition of a 51% equity interest in Shandong Pan-Asia. Through this agreement, the Group will be able to invest in Yantai Xigang liquefied natural gas (“LNG”) receiving terminal and gas pipelines projects. Subsequently on 11 October 2021, the Group entered into a non-legally binding strategic cooperation agreement (the “Cooperation Agreement”) with Beijing Qinglu Zhongbing Asset Management Co., Ltd (“Beijing Qinglu Zhongbing”), under which the two parties may establish funds or joint venture companies to provide funding, if needed, to support the Group’s future business development needs.
The Framework Agreement about the Yantai Xigang LNG Project is the first major project the Group has pursued in the field of energy and environment following its appointment of a new management team comprising industry heavyweights, marking an important step on the path of business transformation.
According to the Framework Agreement, the Group proposes to acquire from Yantai Yindu a 51% equity interest in Shandong Pan-Asia, through which the Group will invest in the Yantai Xigang LNG receiving terminal and the LNG gas pipelines projects, as well as obtaining the access rights and operation and management rights of both projects. After the completion of the acquisition, the Group plans to develop and operate LNG import and trading business domestically and internationally where appropriate, and downstream sales and marketing of LNG in China through Shandong Pan-Asia or its subsidiaries.
Furthermore, in order to broaden the channels of financing and further reduce financing costs, the Group has entered into a Cooperation Agreement with Beijing Qinglu Zhongbing, under which the two parties may establish funds or joint venture companies to source funding in support of the business development and investment projects of the Group. Beijing Qinglu Zhongbing may further develop and expand its business by leveraging its expertise in the financial services business and business connections, to assist the potential acquisitions and resources integration of the Group. Beijing Qinglu Zhongbing was established in the PRC in 2017. It obtained the qualification of private equity investment fund manager as approved by the Asset Management Association of China in the same year.
Mr. Cheung Yip-sang, the Chief Executive Officer of the Group said, “We are pleased to announce the two strategic cooperation agreements which mark a major step in our business development and financing. It is with much excitement that we will be able to invest in the construction and operation of Yantai Xigang LNG terminal, a State key project, to capture opportunities from the “Belt and Road” initiative and the National 14th Five-Year energy strategic plan. The funding arrangement we have entered into with Beijing Qinglu will provide us access to new investors and lower cost of capital when the need arises. These two major strides are expected to benefit our business development and accelerate our business transformation.”
– Published and distributed with permission of Media-Outreach.com.
