Newbridge to sell back stake in Guanghui
Updated: 2007-07-10 09:32
U.S. private equity Newbridge Capital LLC will sell back its US$33.8 million investment in Xinjiang Guanghui LNG Development Co., China’s largest and only privately held liquified natural gas (LNG) company, the parent of Xinjiang Guanghui said over the weekend.
Shanghai-listed Xinjiang Guanghui Industrial Co. said in a statement that it will pay US$45.97 million to buy back the 24.99 percent stake in Xinjiang Guanghui LNG Development that is held by Newbridge.
The move will bring Xinjiang Guanghui Industrial’s holdings in Xinjiang Guanghui LNG Development to 98.12 percent, the statement said.
In 2006, the U.S. private equity firm signed an investment contract with Xinjiang Guanghui to buy 24.99 percent of its LNG affiliates. Newbrige made the investment through its affiliate, Greenway Energy Ltd. According to the contract, Newbridge also had the option to raise its shareholding to 67 percent.
The statement did not provide a reason for Newbridge’s withdrawal from the investment.
Xinjiang Guanghui, an energy and construction company located in the gas-rich Xinjiang, has been rapidly expanding its LNG business to benefit from China’s rising natural gas prices.
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