TIANJIN, China, March 17 /PRNewswire-Asia-FirstCall/ -- China New
Energy Group Company (OTC Bulletin Board: CNER) ("China New Energy"
or the "Company") announced today that the Company has recently
entered into an Equity Transfer Agreement to acquire a 70% equity
interest in Beijing Century Dadi Gas Co., Ltd. and its affiliated
companies (collectively, "Dadi Gas"). Dadi Gas is primarily engaged
in the business of the supply of natural gas and construction and
development of a gas pipeline network in Northern China.
The total purchase price has not yet been determined, but will
be based on a multiple of Dadi Gas's net profits for the fiscal
year ended December 31, 2009 and has
been capped at RMB 392.15 million
(approximately US$57.5 million). The
transaction's closing is contingent upon certain conditions being
met, including the successful transfer of all Dadi Gas's permits
and other rights to operate its urban gas pipelines.
"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."
About China New Energy Group Company
China New Energy Group Company ("China New Energy" or the
"Company") is a vertically integrated natural gas company engaged
in the 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. The Company generates revenues
primarily from the connection fees it charges its customers for
interconnecting to pipelines in its natural gas distribution
networks, and fees for natural gas usage. For more information,
please visit http://www.cnegc.com/ .
Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: Any statements set forth above that are not
historical facts are forward-looking statements that involve risks
and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such
factors include, but are not limited to, the Company's ability to
access natural gas for distribution, and ability to identify and
develop operational locations under favorable terms, changes in
natural gas pricing mechanism imposed by the Chinese government,
changes in the regulatory environment and future national or
regional economic and competitive conditions, and other factors
detailed from time to time in the Company's filings with the United
States Securities and Exchange Commission and other regulatory
authorities. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
For more information, please contact:
Company Contact:
Eric Yu, Chief Financial Officer
Email: ericyu@cnegc.com
Web: http://www.cnegc.com
Investor Relations Contact:
CCG Investor Relations
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
SOURCE China New Energy Group Company