China Resources Gas to launch CNY 4 billion JV in Ningbo

China Knowledge reported that China Resources Gas Group Ltd formerly known as China Resources Logic Ltd has inked an agreement to acquire a 49% stake in Ningbo Xingguang Gas for less than CNY 4 billion to form a joint venture in Ningbo, Zhejiang Province for urban gas distribution.

Under the terms of the contract, the Hong Kong listed buyer will acquire the stakes from state owned Ningbo Urban Construction Planning and Investment Holding Co Ltd which will hold the remaining 51% stakes in the proposed JV.

The deal which is still subject to the approval of relevant authorities and is expected to be completed in June 2012 came after China Resources Gas agreed to set up a JV with Tianjin Gas Group Co Ltd with an investment of RMB 6 billion.

A person familiar with the matter said Ningbo Xingguang Gas has a registered capital of CNY 380 million.

(steelguru, Edited by Topco)