China New Energy unit to acquire Fuzhou Flying Dragon Zhongran Gas
China New Energy has announced that Willsky Development, the company wholly owned subsidiary has entered into an
equity purchase agreement to acquire all of the outstanding equity interest of Fuzhou Flying Dragon Zhongran Gas for
approximately $ 3.8 mm.
The release said the purchase price is reportedly payable in three instalments based on the satisfaction of various
mutually agreed upon closing conditions.
In November 2007, Fuzhou Zhongran obtained an exclusive operating license from the Dongxiang County government in
Jiangxi Province for the construction and development of a natural gas pipeline network for 30 years.
Mr Yangkan Chong CEO of China New Energy said, "Our acquisition of Fuzhou Zhongran is another important step for our
growth in Jiangxi Province, since we recently announced two other acquisitions in that province."
He said that there is increasing demand for natural gas from both residential and industrial users in Dongxiang
County.
"In 2010, we plan to connect the Dongxiang regional gas pipeline network to a major national network."
