ENN Energy said that the company intends to dispose of its 45% and 100% equity interests in the Beihai and Qinshui LNG processing plants.
The potential buyer Xinneng Mining Company is a wholly owned subsidiary of Hebei Veyong, an associate of Wang Yusuo, the chairman of the board and a connected person of the company.
“As at the date of this announcement, terms of the potential disposal have not been agreed, but valuation work by independent evaluator commence shortly to facilitate the negotiation of such terms. The potential disposal, if concluded, may constitute a notifiable and connected transaction of the company under the listing rules, and the company will make further announcements in this regard as and when appropriate,” ENN said in a statement.
The company intends to restructure its business portfolio by the disposal of its interests in the Beihai and Qinshui LNG processing plants, so as to focus the application of its resources to the development of its core downstream operations.
Press Release, July 21, 2014