Tian Lun Gas to acquire Sichuan Ming Sheng Natural Gas
Published by Angharad Lock,
Digital Assistant Editor
Hydrocarbon Engineering,
China Tian Lun Gas Holdings Ltd has announced that it had entered into an equity transfer agreement on 28 November 2015. Under the terms, it would acquire the entire equity interest in Sichuan Ming Sheng Natural Gas Company Ltd for RMB460 million in cash, enabling economies of scale. The acquisition will increase the market share of Tian Lun Gas in southwest China and further strengthen the strategic national coverage of its urban gas operations.
The acquisition follows the two other major acquisitions earlier this year, both 100% equity stakes in Beijing Hui Ji Tai Zhan Investment Company Ltd; as well as Qian County Hong Yuan Natural Gas Company Ltd and Li Quan Hong Yuan Natural Gas Company Ltd. The latest acquisition represents another key strategic and influential move by the Company to maintain its rapid growth trajectory, and to increase its competitiveness.
Tian Lun Gas will obtain a core urban gas operation in the Xindu District of Chengdu City, Sichuan Province upon the completion of the acquisition. The district is positioned as the northern suburb of Chengdu, as it serves as a hub for Chengdu in the areas of mechanical, electronics, food, biopharmaceutical, tourism and logistics.
Ming Sheng Natural Gas has a residential customer base of 100 000 and nearly 2000 industrial and commercial users. It has generated approximately 60 million m3 of gas per year in sales volume, with revenue of approximately RMB180 million.
Zhang Yingcen, Chairman of Tian Lun Gas, said: "The acquisition of Sichuan Ming Sheng Natural Gas will increase our market share in southwest China. We will continue to expand our urban gas exclusive operation areas through mergers, acquisitions, restructuring and partnership, to tap the market potential of neighboring towns in a timely manner, and to improve the gasification rate in service areas. Meanwhile, we will continue to grow by seizing every opportunity in the industry. Under our mission of 'Promoting Clean Energy, Improving the Living Condition' and our 'Customer First' philosophy, Tian Lun Gas will remain focused on its development of natural gas, to become a renowned domestic energy distribution company in China."
Tian Lun Gas currently owns 51 urban gas projects in 17 provinces such as Jilin, Henan, Hebei, Shandong, Shanxi, Gansu, Guangdong, Guangxi, Yunnan, Hunan, Hubei, Chongqing and Sichuan.
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/30112015/tian-lun-gas-acquires-sichuan-ming-sheng-natural-gas-1835/
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