Panva lifts interest in Anshan gas venture
Panva Gas Holdings, one of the mainland's largest private piped-gas suppliers, has tightened its grip on a piped-gas project in Liaoning province by boosting its interest to 81 per cent worth 111.96 million yuan.
The decision to raise its stake in the project in Anshan came after a former partner, Shanghai Jian Shi Hai Jia Investment, backed away from a committed purchase of of a 30 per cent interest in the project for 41.46 million yuan.
Panva, committed to a 51 per cent interest for 70.49 million yuan in the Anshan City Gas project, yesterday said it might take the chance as well to raise its stake by buying Shanghai Jian Shi Hai Jia's shareholding based on the valuation of the project when the deal was first struck in December last year.
'Entering into a further asset transfer agreement will allow Panva Gas to consolidate further control of Anshan City Gas at a reasonable consideration,' the company said in a statement.
Panva and Shanghai Jian Shi Hai Jia terminated an agreement dated on December 23 last year.
In its place, the company signed a new deal on Tuesday which allowed Panva to buy 81 per cent of Anshan City Gas for 111.96 million yuan based on the state-owned utility's 138.22 million yuan net assets at the end of June last year.
The Anshan project is Panva's third in northeastern China after projects in Changchun and Qiqihar.
The project has exclusive rights to provide piped-gas services to the 3.6 million population of Anshan, the third-largest city in Liaoning.
Panva is confident that it will turn the Anshan project around within two to five years.
The company added that it did not see the purchase of an extra stake in Anshan City Gas causing any material impact on its earnings and liabilities as well as those of its parent, Sinolink Worldwide Holdings.