New Oak Energy has sold its 900,000-ton coal-to-methanol project

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Newao Co., Ltd. has sold its 900,000-ton coal-to-methanol project. Author/Source: Modern Coal Chemical Industry. Date: April 6, 2021. Clicks: 30. On March 29, 2021, Lianhong New Technology signed equity transfer agreements with Newao Co., Ltd. and Langfang Huayuan regarding this acquisition; Lianhong New Technology acquired 40% of the shares in Xinneng Phoenix (Tengzhou) Energy Co., Ltd. held by Newao Co., Ltd., as well as 42.5% of the shares held by Langfang Huayuan, for a total consideration of approximately RMB 1.188 billion. The signing, entry into force, and completion of the share transfer agreement regarding Lianhong New Technology and the share transfer agreement regarding Newao Shares are independent of each other and do not depend on one another. If both the acquisition by Newao Shares and the acquisition by Langfang Huayuan are completed, Lianhong New Technology will hold 100% of the shares in Xinneng Phoenix (Tengzhou) Energy Co., Ltd., and Xinneng Phoenix (Tengzhou) Energy Co., Ltd. will become a wholly-owned subsidiary of Lianhong New Technology. Xinneng Phoenix (Tengzhou) Energy Co., Ltd. It is reported that Xinneng Phoenix (Tengzhou) Energy Co., Ltd. is a limited liability company established in Tengzhou City, Shandong Province, China, and is primarily engaged in the production and sales of methanol; its registered capital amounts to 1.2 billion RMB. Upon completion of the acquisition, Lianhong New Materials’ core business and product portfolio remain unchanged; it continues to focus on the development of new materials, striving to build leading industrial clusters in several sub-sectors of this field. The announcement states that following this strategic acquisition, Lianhong New Materials will be able to reduce the volatility in its profits caused by fluctuations in the price of methanol as a raw material. This will also provide the company with stable and consistent cash flows over the long term, enabling it to further develop its business in the fields of advanced materials and specialty fine chemicals. The company believes that this acquisition will contribute to the steady growth of performance in its new materials segment, aligns with the company’s long-term strategic interests, and is expected to generate substantial investment returns for its shareholders.