Gas firm to buy Newbridge stake in unit
Updated: 2007-07-25 12:48
Xinjiang Guanghui Industry Co said yesterday its shareholders had approved a plan to buy back a 24.99 percent stake in a natural gas subsidiary from U.S. investment firm Newbridge Capital.
Xinjiang Guanghui will purchase the stake in Xinjiang Guanghui LNG Development Co. from Newbridge’s Greenway Energy Ltd. for US$45.97 million. Greenway Energy bought the stake for US$33.8 million last year. Under that agreement, Xinjiang Guanghui could buy back the stake if it failed to reach a gas supply deal with Greenway within six months. A deal has not been reached, Xinjiang Guanghui said. The Chinese company said it would fund the buy-back mostly with internal funds.
Xinjiang Guanghui, which also has interests in logistics and trading services, announced yesterday that it booked 112.41 million yuan in net profit for the first half of this year, down 17 percent from a year earlier.
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