Elegance Optical International Holdings Limited (“The Company”) is pleased to announce that Green Source Global Limited (“the Subscriber”), an indirect wholly-owned subsidiary of the Company, has entered into the agreement with H. Sterling LNG Terminal Holding Limited (“Target Company”) and the Existing Shareholder (“Existing Shareholder”), pursuant to which the Subscriber has conditionally agreed to subscribe for, and the Target Company has conditionally agreed to issue and allot, 10,000 subscription shares, representing 50% of the issued share capital of the Target Company as enlarged at the subscription price of RMB223 million, to be settled in cash (“the Agreement”).
Completion of the subscription shall take place on the 30th business day after all the conditions precedent under the Agreement having been fulfilled or waived (or such other date as the parties to the Agreement may agree).
Upon the completion, the Company will indirectly own 50% equity interest of the Target Company, representing approximately 10.5% equivalent interest in Yantai LNG Terminal Project Company of which 21.0% equivalent interests is held by the Target Company.
The directors of the Group are optimistic about the prospects of the Yantai LNG Terminal Project that its annual income is estimated at approximately RMB2.5 billion by the top management of the Group. The Yantai LNG Terminal Project is listed as 2021 China’s major project in Shandong Province and will be the 23rd LNG terminal in China. As of now, China has 22 LNG terminals, in which 15 of them are owned and operated by government owned enterprises.
The subscription is in line with the investment strategy of the Group and will allow the Group to diversify its income stream and investment portfolio. The Group will explore opportunity to coorperate on the whole value chain of natural gas sector covering production, supply, storage and distribution, to further enhance the Company’s foundation in respect of international trade of liquefied natural gas.