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| Possesses World's Leading Lubricating Oils Recycling Technology |
HONG KONG, Mar 23, 2011 - (ACN Newswire) - Global Energy Resources International Group Limited ("Global Energy Resources" or "the Group") (Stock Code: 08192.HK), today announced that it has entered into a memorandum of understanding ("MOU") regarding the possible acquisition of a lubricating oils recycling project.
Pursuant to the MOU, the Group will acquire not less than 50.76% of the total equity interests of Yi Feng Petrochemical Limited ("Target Company") which is jointly owned by Fortune Champ Group Limited ("Fortune Champ") and Greenhaven Technologies Limited with a total consideration of HK$118,225,000. Of which, subscription of not less than 25.76% of enlarged share capital of the Target Company will be settled by HK$60,000,000 in cash, while acquisition of existing shares of not less than 25% enlarged share capital of the Target Company from major shareholder, Fortune Champ will be satisfied by HK$58,225,000 in terms of cash and issue and allotment of new shares.
According to the information provided by the vendor, the main business of the Target Company is to collect and recycle of used lubricating oils, where advanced technology is employed to produce refined recycled lubricating base oils.
Currently, the Target Company owns the world's leading used lubricating oils recycling technology. The core technology is provided by the China Petroleum and Petrochemical Engineering Institute, which has already been certified by the country. Furthermore, the Target Company has entered into cooperation and technology transfer agreements with four national oil and petrochemical institutions, and a core technology team led by authoritative petrochemical experts in China will also be formed. A site area of approximately 12,500 square meters in Tseung Kwan O Industrial Estate has been granted by the Hong Kong Government to the Target Company. It is now at the investment stage with a target annual production capacity of 30,000 tonnes for the first phase.
Ms Li Xiao Mei, Chairman of Global Energy Resources, said, "We have been planning to engage in green energy-related projects for a long time and we are pleased to sign this memorandum of understanding for recycling project which carries great potential. The acquisition represents a good opportunity for us, as it is in line with the direction of the country to save energy and reduce emissions, and it can also generate strong profits for the Group."
Used lubricating oils, are mainly produced by motor vehicles, ships elevators and other machineries, which contain substantial amount of pollutants and heavy metals. Disposal of chemical wastes, including used lubricating oils, to unlicensed treatment facilities is an offence in Hong Kong. Currently, used lubricating oils in Hong Kong are collected by two licensed waste oil treatment companies which will then send the oil to the Chemical Waste Treatment Centre in Tsing Yi Island for burning. In turn, not only recyclable materials are wasted, but also generate carbon dioxide and other air pollutants. In view of this, the Group expects that the new resources recycling technology carries high potential and enjoys great room for development in China and even in Asia.
Ms Li Xiao Mei concluded, "The acquisition of the used lubricating oils recycling plant is one of the strategies that will benefit the Group to expand horizontally to new business and broaden our revenue base. Looking ahead, we intend to explore other energy-saving and new energy related businesses to capture the opportunities created by China's Twelfth Five-Year Plan that designates green industry as one of the key emerging industries and the country's pillar industries. We are confident of bringing better returns to shareholders through our new business and deployment of advanced technologies."
Contact:
Strategic Financial Relations (China) Limited
Esther Lau
Tel: +852 2864 4845
Email: esther.lau@sprg.com.hk
Winnie Lau
Tel: +852 2864 4876
Email: winnie.lau@sprg.com.hk
Topic: Merger & Acquisition
Source: Global Energy Resources
Sectors: Energy, Alternatives
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From the Asia Corporate News Network
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