DZUG Acquire the Share of Suchuang Gas
On May 27, 2016, Shanghai Dazhong Public Utilities (Group) Co.,ltd ( "DZUG") acquired part of the shares of Suchuang Gas Corporation Limited ("Suchuang Gas") through its wholly-owned subsidiary Shanghai International Group (Hong Kong) Co., Limited ( "Dazhong Hong Kong"). DZUG group transfered the shares of Suchuang Gas held by the Greenland Financial Overseas Investment Group Co., Ltd. and Fung Yu Holdings Limited,and participated in the new share subscription of Suchuang Gas to complete the trade. After the completion of the transaction, DZUG, as the investor of the industry, will become the second largest shareholder of the Suchuang Gas, holding up to 19.86%. DZUG's participation will have a positive impact on the business decision of Suochuang Gas and will create conditions for further cooperation between the two sides in the future.
Suchuang Gas was listed on the main board of Hong Kong on March 11, 2015 (stock code 1430.HK). It is the major pipeline gas supplier and operator in Taicang City, Jiangsu Province. By December 31, 2015, the total length of Suchuang Gas natural gas pipeline reached 561.8 km (covering more than 90% of the natural gas pipeline network of Taicang according to the length),with 537 industrial and commercial users and 159,644 residential household users, reaching 213 million cubic meters of total gas sales.
DZUG is adjacent to the Suchuang Gas, and they will have many cooperations in the future in terms of gas supply, LPG wholesale and retail, and so on. Through this acquisition, DZUG increased investment on the gas industry, which had positive influence on the improvement of the overall profitability in the gas business aspect, in line with the interests of all shareholders and the demands for strategic development of the Group.