Dec 29 2009
China Integrated Energy has reached separate agreements to acquire three gas stations, which are located near the city of Xi'an, Shaanxi Province, PRC. The gas stations to be acquired are Jinzheng gas station, Jindou gas station and Andong gas station.
China Integrated Energy has acquired Andong gas station for a total sum of $6.4 million. All the assets of the gas station were acquired and will be operated under a 20-year lease. It distributes diesel, gasoline and blended biodiesel. The gas station generated $4.4 million revenues for the past 12 months by selling approximately 6,000 tons of fuel. The company aims to generate revenues of $6.3 million in the next 12 months by selling approximately 7,200 tons of fuel.
Jindou gas station, which sells both diesel and gasoline including biodiesel, was acquired for a total sum of $2.6 million. China Integrated Energy has acquired all the assets of the gas station and will it be operated under a 10-year lease. The facility generated total revenues of $3.5 million for the past 12 months with the sale of approximately 4,800 tons of fuel and estimates to sell 5,500 tons of fuel and generate revenues of approximately $4.8 million.
China Integrated Energy has acquired all the assets including the 40-year land use rights of Xianyang Jinzheng gas station for a total sum of $10 million. This gas station, which is recently built, distributes diesel, gasoline and blended biodiesel. Since this facility was newly built, it does not have previous operating history. The company estimates to generate $8.8 million in revenues by selling approximately 10,000 tons of fuel.
China Integrated Energy, being a producer of biodiesel and distributor, has the capability to provide assured supply of fuel to all its ten gas stations. Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, said that the company is delighted with the acquisitions, which increases its total number of operating gas stations in Shaanxi province to ten.
Source: http://www.cbeh.net.cn