May. 18, 2012 (China Knowledge) - China
Resources Gas Group Ltd<1193>, controlled by State-owned China
Resources (Holdings) Co, has agreed to acquire AEI China
Gas Ltd, a urban gas pipeline operator and distributor, for US$238 million from several investors.
currently operates 28 city gas projects, 8 gas stations and 4 midstream gas transmission pipeline projects in 11 provinces in China
Ken Ong, chief financial officer of CR Gas, said the sellers, including Goldman Sachs, Government of Singapore Investment Corp and an energy fund, are advised by Morgan Stanley on the deal.
The acquisition is part of CR Gas' plans to be a market leader in the downstream urban gas industry, Ong added. CR Gas expects to spend US$2 billion, including the US$238 million for the acquisition of AEI China
, to boost its sales by 5 billion cubic meters by 2015.
The deal implies more than 14 times AEI China
's estimated earnings of RMB 106 million this year, said analysts.
CR Gas has earmarked HK$15 billion for acquisitions in the period from 2011 to 2015, sources reported.