China’s Fortune Oil buys into LNG rival Everthriving Energy

FORTUNE OIL has struck up an agreement with Everthriving Investment to acquire 65 per cent of the share capital in three of the Chinese company’s subsidiaries.

Under the agreement, Fortune Oil will make an initial payment of £9.71m and a deferred payment of £4.64m for a large stake in Everthriving’s Energy Technology, Logistics and Plastics Technology subsidiaries.

Fortune Oil will make the acquisition through a newly incorporated subsidiary, Fortune Gas Technology, with hopes that the entire acquisition will be complete by March 2011.

Tee Kiam Poon, Fortune Oil chief executive, said: “These strategic acquisitions add to our portfolio of LNG and gas projects and, particularly in the conversion technologies, will move [us] up the technology ladder, enhance our competitive advantage, and develop our capabilities.”

Fortune Oil will be entitled to 65 per cent of the profits and capital from all three companies, once the deal closes.

Last year, one of the subsidiaries drew in net profit of £2.14m on a turnover of £3.72m.