GOLDLINK Capital, a subsidiary of China Print Power Group, has agreed to buy natural gas company, Shine Great Investments, from New Times Energy Corporation's unit, Total Belief.
Total Belief will sell 8.55 million Shine Great shares, representing a stake of 85.46 per cent of the enlarged issued share capital of Shine Great, for HK$230.05 million (S$37.9 million), payable in shares, cash and bond issue.
After market close on Tuesday, Goldlink - a unit of Blue Sky - has agreed to subscribe for 1.45 million Shine Great shares for 30 million yuan (S$6.2 million), payable to Shine Great in cash as part of the subscription agreement.
After the deal completion, New Times will reduce its indirect interest in Shine Great to 49 per cent, and the Shine Great Group will cease to be subsidiaries of New Times.
New Times, which expects a net proceed of HK$15 million from the transactions, plans to use the proceeds as general working capital and for funding of investment as and when suitable opportunities arise. "The directors of New Times believe that the disposal represents a good opportunity for New Times Group to realise the value of the Shine Great Group and craft out its loss-making business segment,'' it said.
As for Blue Sky, it plans to use the acquisition to further establish its market presence and strengthen its business portfolio of natural gas business operations in China. "In view of the above, the directors of Blue Sky consider the terms of the acquisition are fair and reasonable and in the interests of its shareholders as a whole,'' Blue Sky added.