Panva Gas Holdings has sealed its biggest acquisition, paying 395 million yuan for a 50 per cent interest in a Jilin gas project.
The project will serve as a stepping stone into northeast China for the piped-gas supplier and expand its scattered portfolio in Sichuan, Guangdong, Jiangsu, Shandong and Anhui provinces.
It would figure in Panva's profit and loss account on completion of the deal, a spokeswoman said.
The acquisition is part of the company's aggressive push into the thriving, yet increasingly competitive, gas sector, with managing director Wayne Chen Wei saying earlier this month that about five deals could still be signed this year.
According to a sale and purchase agreement, Panva agreed to pay 379.2 million yuan to the state asset authority in Changchun for a 48 per cent stake in Changchun Gas Holdings and 15.8 million yuan to Shenzhen Hua Fu Investment for a 2 per cent interest.
A key asset of Changchun Gas is a 60 per cent shareholding in Shanghai-listed A share Changchun Gas Co.
The principal business of both companies includes the building of gas pipelines and the supply of coal gas, natural gas and liquefied petroleum gas to customers in Changchun, Jilin.