Greater China

Rongsheng acquires 60 percent interest in Kyrgyzstan oil project

Shanghai: Rongsheng Heavy Industries announced that Ocean Sino Holdings, an indirectly wholly-owned subsidiary of the company, has entered into a share purchase agreement with New Continental Oil & Gas Co.

Under the agreement, Ocean Sino Holdings agreed to acquire a 60% interest in Central Point Worldwide, a wholly-owned subsidiary of New Continental Oil & Gas for HK$2.184bn, which will be satisfied by the allotment and issue of 1.4bn shares of Rongsheng.

The acquisition involves four oilfields adjacent to the Fergana Valley of Kyrgyzstan. Central Point Worldwide was granted rights to operate the oilfields.

Rongsheng believes the acquisition offers the company a great opportunity to enter into the energy sector and will help to enhance its profit margins.[22/08/14]

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