AIM listed Green Dragon Gas Ltd., the Chinese coal bed methane business, has completed purchase agreements with Beijing Nanhai Environment Engineering Ltd. and several private investors to acquire 100% of the share capital of Zhengzhou Nanhai Gas Ltd (“ZNG”), Zhengzhou Clean Petro-Equipment Ltd. (“ZCP”) and Zhengzhou Clean Technology Ltd. (“ZCT”). All the businesses are located and operate in the Company’s China operating hub, Zhengzhou, the capital of Henan Province.
The aggregate consideration for purchases was USD $9.25 million payable in cash on completion. The acquisitions were funded from Green Dragon’s existing cash resources.
ZNG directly controls one operating Compressed Natural Gas (“CNG”) Service Station (“CNGS”) and holds the licenses and approvals to construct three more, which are in various stages of development.
ZCP is a profitable operating equipment supplier for CNG vehicles, service stations and other related activities. Its “ZZ Clean” branded CNG dispensers have been sold and delivered to a growing list of customers and are operational in the Northeast, Central and Eastern China regions.
ZCT is a niche technology company providing proprietary software and Supervisory Control and Data Acquisition systems for petrochemical companies.
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