Sino Gas International Holdings, Inc. Announces Acquisition of Beijing Chenguang Gas Co., Ltd.
January 23 2007 - 8:00AM
PR Newswire (US)
BEIJING, Jan. 23 /Xinhua-PRNewswire-FirstCall/ -- Sino Gas
International Holdings, Inc. (OTC:SGAS.OB) (BULLETIN BOARD:
SGAS.OB) ("Sino Gas", the "Company"), through its Beijing Zhong Ran
Wei Ye Gas Co., Ltd. ("Beijing Gas") a rapidly growing developer of
natural gas distribution systems in small- and medium- sized
cities, as well as a distributor of natural gas to residential,
commercial and industrial customers in China, announced today that
it entered into a stock purchase agreement to acquire all the
capital stock of Beijing Chenguang Gas Co., Ltd., a privately held
natural gas distribution business in Beijing, China for
approximately $3.35 million in cash. The transaction includes all
assets, customer relationships and concession rights owned by
Beijing Chenguang Gas Co., Ltd., including the exclusive concession
rights to build and operates seven gas distribution systems
currently serving 25,202 residential customers, with two of the
seven systems located in Beijing and the remainder in Shijiazhuang,
Xinji City and Cheng'an County in the Hebei Province, as well as
four industrial projects with gas supply of 27,000 to 46,000 cubic
meters per day. In 2005, Beijing Chenguang Gas Co., Ltd. realized
revenues of $2.29 million, $1.64 million from gas sales and $0.59
million from connection fees. "The acquisition of Beijing Chenguang
Gas Co is an important achievement for Sino Gas, as it gives us
exclusive access to attractive gas distribution markets and helps
us significantly accelerate our growth," commented Mr. Liu,
Chairman, CEO and President of Sino Gas. "We are pleased with the
execution of our strategy so far and look forward to continue to
grow our business organically and through acquisitions to reach the
goal of becoming a leading distributor of natural gas in China."
Upon completion of this transaction, Beijing Chenguang Gas Co.,
Ltd. will become a wholly owned subsidiary of Beijing Gas. This
transaction is expected to close on or before the 18th of February
2007 and will add 25,202 connected households to Sino Gas' existing
33,000 as of the end of the third quarter 2006 and be accretive to
earnings in 2007. About Sino Gas International Holdings, Inc. The
Company, through its indirectly wholly-owned subsidiary, Beijing
Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas"), and the
subsidiaries of Beijing Gas, is a leading developer of natural gas
distribution systems in small- and medium-sized cities in China, as
well as a distributor of natural gas to residential, commercial and
industrial customers in China. The company owns and operates 20
natural gas distribution systems serving approximately 33,000
residential and four commercial and industrial customers.
Facilities include approximately 200 kilometers ("km") of pipeline
and delivery networks with a designed daily capacity of
approximately 40,000 cubic meters of natural gas ("m3"). The
company is currently constructing four additional natural gas
distribution systems and is planning two more natural gas
distribution systems. Beijing Gas Company owns and operates natural
gas distribution systems primarily in Hebei, Jiangsu, and Shandong
Provinces. For further information, visit the Company's website at
http://www.sino-gas.com/. About Beijing Chenguang Gas Co., Ltd.
Beijing Chenguang Gas Co., Ltd. ("Chenguang") is a developer of
technology for natural gas purification, compression and
transportation, and is also a developer of natural gas distribution
systems, as well as a distributor of natural gas to residential,
commercial and industrial customers in China. Chenguang owns and
operates 7 gas distribution systems with 25,202 connected
households; it also operates 4 industrial locations. Safe Harbor
Statement This announcement contains "forward-looking statements"
within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact in this announcement are
forward-looking statements, including but not limited to, the
Company's ability to raise additional capital to finance the
Company's activities; the effectiveness, profitability, and the
marketability of its products; legal and regulatory risks
associated with the Share Exchange; the future trading of the
common stock of the Company; the ability of the Company to operate
as a public company; the period of time for which its current
liquidity will enable the Company to fund its operations; general
economic and business conditions; the volatility of the Company's
operating results and financial condition; and other risks detailed
in the company's filings with the Securities and Exchange
Commission. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the
companies and the industry. Although the company believes that the
expectations expressed in these forward looking statements are
reasonable, they cannot assure you that their expectations will
turn out to be correct, and investors are cautioned that actual
results may differ materially from the anticipated results. All
information in this release is as of January 21, 2006. The Company
undertakes no duty to update any forward-looking statements to
conform the release to actual results or changes in its
circumstances or expectations after the date of this release.
Contact: Sino Gas International Holdings, Inc. Ms. Fang Chen, Chief
Financial Officer, Phone: +86-10-8260-0042 Email: CCG Elite
Investor Relations Crocker Coulson, President Ed Job, Financial
Writer Phone: +1-646-213-1915/1914 (New York) Email: / DATASOURCE:
Sino Gas International Holdings, Inc. CONTACT: Ms. Fang Chen, Chief
Financial Officer of Sino Gas International Holdings, Inc.,
+86-10-8260-0042, or ; or Crocker Coulson, President,
+1-646-213-1915-1914, or , or Ed Job, Financial Writer,
+1-646-213-1915-1914, or , both of CCG Elite Investor Relations,
for Sino Gas International Holdings, Inc. Web site:
http://www.sino-gas.com/
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