Green Dragon Gas Ltd. (AIM: GDG), announces that its acquisition of Giant Power International Ltd (“GPI”) completed as planned today. The 100% acquisition of GPI provides the Company with a strategic investment in gas mother distribution stations in Zhengzhou, Henan and Wuhu, Anhui in partnership with PetroChina. These mother stations have current capacity of 330,000M3 and 200,000M3 per day respectively of gas distribution capacity off the West-East pipeline which can be expanded and are profitable presently.
The Company also announces the issuance of 6,654,676 ordinary shares of US$0.0001 each (“Ordinary Shares”) to a convertible bond investor, PB Commerce Ltd, arising from the exercise of US$37 million in convertible bonds issued by the Company. In addition, Green Dragon Gas (Holdings) Ltd (Randeep Grewal, a director of the Company, and members of his family are beneficiaries) sold 2 million Ordinary Shares (2% of its interests) to the same investor for US$9.75 per share. Following these transactions, Green Dragon Gas (Holdings) Ltd holds 88,000,000 Ordinary Shares (representing 83.1% of the Company’s issued share capital).
Application for admission to trading on AIM of the new Ordinary Shares arising on conversion of the bonds will be made shortly and this is expected to become effective on or before 11 July 2008. Following this issuance, 17,896,159 shares or 16.9% of the Company’s issued shares will be held in public hands.
Mr. Randeep S. Grewal, Green Dragon’s Chairman & CEO stated “I am pleased that the recently announced acquisition of GPI has completed as planned. I believe that GPI provides Green Dragon with a unique, strategic and profitable asset.”
Mr. Grewal added. “I am also pleased that the number of Green Dragon shares in public hands has now increased four fold since the listing on AIM two years ago, in part due to the conversion of the bonds which has also strengthened the Company’s balance sheet.”
Green Dragon Gas is an upstream gas production company focused on developing environmental friendly Coal Bed Methane (CBM) in China. Green Dragon Gas is one of the private sector pioneers in working with its stated owned partner China United Coalbed Methane Co. Ltd. (CUCBM) towards commercializing significant CBM resources in China. Green Dragon Gas is one of the largest foreign partners of CUCBM.
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