Towngas Partners with Panva to Grow Piped Gas Businesses in Mainland China
The Hong Kong and China Gas Company Limited (“Towngas”) and Panva Gas Holdings Limited (“Panva”) jointly announced in Dec.4th that Panva will acquire equity interests in 10 Mainland China piped gas companies and shareholder loans from Towngas. Panva will issue approximately 772 million new shares to Towngas, equaling to 44% of Panva’s enlarged share capital, making Towngas the largest shareholder in Panva.

Panva Gas Announces Its Acquisitions in Piped Gas and LPG Projects Business Development in Dual Fronts to Strengthen Market Share
Panva Gas entered into an Asset Transfer Agreement with a piped gas company and a LPG company in China, respectively this month to acquire 90% stake of Fuxin Gas Co. Ltd., and 50% stake of Hangzhou LPG Co., Ltd (“Hangzhou LPG”) for a total consideration of RMB 99,330,000.

Panriver Investments Co., Ltd. has entered into an Asset Transfer Agreement with the Chaoyang People's Government State Assets Supervision & Management Committee to acquire 90% of the state-owned equity right of Chaoyang Town Gas Company for a total consideration of RMB80.324 million, which holds a 30-year concession to operate the piped gas and LP Gas business in Chaoyang, Liaoning province.

Panriver Investments Co., Ltd. has signed an Asset Transfer Agreement with the Tieling Rural Construction Committee to acquire 80% of Tieling Town Gas Company for a total consideration of RMB39.37 million, which holds a 30-year concession to operate the piped gas business in Tieling, Liaoning province.

Panva Gas successfully migrated from GEM to Main Board by way of introduction. The new stock code on Main Board is 1083.HK.

Panriver Investments signed an Asset Transfer Agreement with the Benxi People's Government State Assets Supervision & Management Committee to acquire 80% of Benxi Town Gas Company, which holds a 30-year concession to operate the piped coal gas business in Benxi, Liaoning province.

Panva Gas’s Professional Executives Club established

Jinan Panva LPG Co., Ltd. was founded officially

Shandong Panva Gas Co., Ltd. was founded officially

Panva Gas launched a new set of specified color cylinder to the market under the approval from the General Administration of Quality Supervision, Inspection and Quarantine of the PRC. The first experimental units are Changsha Panva, Yangzi Panva, Wuhu Panva and Chizhou Panva

Pengshan Panva Gas Co., Ltd. was founded officially

Enerchina Holdings Ltd. has completed the acquisition of 58.45% shareholding interest in Panva Gas from Sinolink Holdings Ltd. After the transaction, Enerchina will be the major shareholders of Panva Gas and the structure of the three companies (Sinolink, Enerchina, and Panva Gas) will turn into a vertically controlling framework.

Jianyang Panva Gas Co., Ltd. was founded officially

Zhongjiang Panva Gas Co., Ltd. was founded officially

Chengdu City Gas Co., Ltd. was founded officially

Panva Gas’s Technical Assurance Department started to centralize PE pipelines procurement in selected subsidiaries within the Group

Changchun Gas Holdings Ltd was founded officially

Panva Gas won a tender and acquired a 13% interest in Chengdu City Gas for a consideration of RMB170,352,000. Chengdu is the capital of Sichuan province, with a population of approximately 11,000,000. Chengdu City Gas is principally engaged in the provision of natural gas to domestic and commercial users and the operation of the city gas pipeline network in the city of Chengdu of Sichuan province.

Panva Gas issued guaranteed senior notes in an aggregate principal amount to US $200,000,000 due 2011 (the US Notes ) jointly arranged by Morgan Stanley & Co. International Limited and Merrill Lynch Far East Limited. The offering attracted a gigantic order book of $1.5 billion. The US Notes have been rated BB+ and Ba1 by international rating agencies Standard and Poor’s Rating Group, Inc. and Moody’s Investors Services, Inc. respectively.

Panriver Investments bought 48% of Changchun Gas Holdings. The key asset of Changchun Gas Holdings is its 60% stake in Shanghai-listed A-share Changchun Gas. `The acquisition will serve as the springboard for Panva Gas in its future business development in the northeastern part of China.

Panva first household goods distribution system was established in Nanjing. Customers within Nanjing urban area can order groceries such as oil, rice etc. from Panva. This distribution business helps Panva to further enhance its brand name and international operation system.

Completion of the top-up placement. Total issued shares increase to 942 million shares.

The Group entered into Guangdong Province by acquiring 45% interest in Foshan Panva Gas with 50 years exclusive rights in piped gas operation.

The Group announced issue of 155.2 million new shares, raising HK$620.8 million of new capital through Morgan Stanley and Merrill Lynch.

Sinolink excercised its HK$100 million convertible notes, and was issued additional 169 million shares. Sinolink has 64.24% interest, compared to previous 72.95% interest, in Panva Gas, after the new share issue and notes conversion.

The Group entered into Harbin, the capital city of Heilongjiang province, with the signing of a MOU with Harbin City Government to establish a joint venture to operate and develop piped gas business.

The Group signed MOUs, framework agreement and acquisition agreement with four more cities namely, Yinbin, Yuechi, Jianyang, Pingchang, in the Sichuan Province. Total number of cities with piped NG operations in the Sichuan Province increased to seven.

The Group signed a sino foreign joint venture agreement with Jinan Gas Co. Ltd to establish Jinan Panva Gas Co. Ltd with 50 years of exclusive operations rights in Jinan Western district to operate and develop its piped gas business.

The Group servicing 1.63 million bottled LP Gas users and 161,500 piped gas users through 22 joint venture subsidiaries.

The Group signed a sino foreign joint venture agreement with Jinan Gas Co. Ltd to establish Jinan Panva LPG Co. Ltd with 30 years of operation in LP Gas distribution business.

Panva Management Institute officially opened in Nanjing.

The Group issued through Morgan Stanley US$ 50 million, 5 year convertible bonds at a coupon rate of 2%.

The Group was the first Growth Enterprise Market (“GEM”) company to receive the rating by Standard & Poor with a BB+ foreign currency corporate credit rating and a stable outlook.

The Group servicing 1.48 million bottled LP Gas household users and 97,000 piped gas users through 20 joint venture subsidiaries.

Hutchison completed acquisition of HK$125 million exchangeable notes from Sinolink with conversion price of HK$ 3.25 which upon conversion will have an additional interest of 6.48% in Panva Gas.

The Group secured a RMB 6 billion credit facility from Bank of China Shenzhen Branch.

Hutchison International Limited (“Hutchison”), a wholly owned subsidiary of Hutchison Whampao Limited, acquired Panva Gas shares from Sinolink at a total considerations of HK$125 million (on HK$3.25 per share) owning 6.48% interest in Panva Gas.

The Group servicing 1.13 million bottled LP Gas household users and 31,000 piped gas users through 14 joint venture subsidiaries

The Group established its first natural piped gas business in Ziyang City, Sichuan Province, China.

Panva Gas Holdings Ltd. (Panva Gas or “the Group”) was listed on the Hong Kong Stock Exchange GEM (stock code: 8132.hk) through an initial public offering and raising approximately HK$64.15 million.

The Group servicing 800,000 bottled LP Gas household users through 13 joint venture subsidiaries.

The Group servicing 300,000 bottled LP Gas household users through 13 joint venture subsidiaries.

The Group servicing 100,000 bottled LP Gas household users through 9 joint venture subsidiaries.