Chinese investor invests in Jatoil
Energy company Jatoil has executed a share subscription agreement with Sheng Run Holdings.
An Australian company owned by Chinese electric power and road infrastructure developer Li Xipeng, Sheng Run Holdings Group has been issued 17,144,888 fully paid ordinary shares in Jatoil at $0.04 (€0.03) per share, to raise $685,796. This placement represents 13.04% of the issued capital of the company. The price represents a 15% premium to where the shares traded before the transaction was announced.
Jatoil has also concluded a heads of agreement with Sheng Run for a further $1.536 million capital injection once Jatoil’s proposed deal to buy Blackrock Resources, a company with significant coal resources in Kalimantan, Indonesia, concludes successfully.
The coal acquisition is still subject to completion of due diligence. If completed, Sheng Run’s second subscription would boost its total holdings to just under 20%, at which point it would be invited to nominate a director to the Jatoil board.
‘Sheng Run provides us with a partnership that opens the door for Jatoil to sell fuel directly to the Chinese power industry,’ said Jatoil’s CEO Phil Hodgson. ‘This deal validates our recent decision to broaden our operating base from soley being a biofuel company to becoming a diversified energy provider.’
Source: Jatoil
An Australian company owned by Chinese electric power and road infrastructure developer Li Xipeng, Sheng Run Holdings Group has been issued 17,144,888 fully paid ordinary shares in Jatoil at $0.04 (€0.03) per share, to raise $685,796. This placement represents 13.04% of the issued capital of the company. The price represents a 15% premium to where the shares traded before the transaction was announced.
Jatoil has also concluded a heads of agreement with Sheng Run for a further $1.536 million capital injection once Jatoil’s proposed deal to buy Blackrock Resources, a company with significant coal resources in Kalimantan, Indonesia, concludes successfully.
The coal acquisition is still subject to completion of due diligence. If completed, Sheng Run’s second subscription would boost its total holdings to just under 20%, at which point it would be invited to nominate a director to the Jatoil board.
‘Sheng Run provides us with a partnership that opens the door for Jatoil to sell fuel directly to the Chinese power industry,’ said Jatoil’s CEO Phil Hodgson. ‘This deal validates our recent decision to broaden our operating base from soley being a biofuel company to becoming a diversified energy provider.’
Source: Jatoil
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