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China New Energy is engaged in the development of natural gas distribution networks, the distribution of natural gas to residential and industrial customers in small- and mid-sized cities in China and the exploration and recovery of natural gas reserves
China New Energy expands presence in northern China’s gas market
Integrated natural gas company, China New Energy Group Company (“China New Energy”)(OTC:CNER) has expanded its presence in northern China through the acquisition of a 70% stake in Beijing Century Dadi Gas (“Dadi Gas”).
China New Energy will pay a maximum consideration of US$57.5 million (RMB 392 million) for the 70% stake, with the final amount due to be calculated on a multiple of Dadi Gas’s 2009 full year net profits (ended 31 December).
Dadi Gas is primarily engaged in the business of the supply of natural gas and construction and development of a gas pipeline network.
"Upon completion, our acquisition of a majority stake in Dadi Gas will expand China New Energy's business into Northern China, including the Beijing Metropolitan area, one of the most important markets in the country," said Mr. Yangkan Chong, Chief Executive Officer. "The Northern China region is densely populated, prosperous, and has a rich supply of natural gas. We are executing our strategy to grow our customer base, diversify our revenue, and build shareholder value through key acquisitions, and this is an important step in our transformation into a truly national gas company."
China New Energy is focused on developing natural gas distribution networks for residential, industrial, and commercial users in small and medium sized cities in China.
