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AEI Acquires Tongda Energy and Beijing Macrolink Gas
HOUSTON-(Business Wire)-January 31, 2008 - AEI, a company that owns and operates essential energy infrastructure businesses in emerging markets worldwide, announced today that it has acquired a 100% equity interest in Tongda Energy Pte. Ltd., an operator of city gas companies with operations in Mainland China, from a group of Chinese private investors. Separately, AEI also announced that it has acquired a 70% stake in a second city gas operator, Beijing Macrolink Gas, Ltd. (BMG), from the Macrolink Group and its affiliates. Terms of the transactions were not disclosed.
Incorporated in Singapore, Tongda Energy constructs urban gas pipelines, sells and distributes piped gas, and operates auto-filling stations in Mainland China. As of December 2007, Tongda Energy held controlling interests in nine urban gas companies and served approximately 150,000 customers. Tongda Energy has also recently obtained governmental approvals to invest in another gas franchise in China's Jiangxi province and a filling station in the country's Laizhou province.
Similar to Tongda Energy and based in Beijing, BMG's core business activities include constructing city gas pipelines and the distribution and sale of piped gas in Mainland China. BMG currently holds controlling interests in 15 city gas companies and currently serves approximately 70,000 connected users. BMG also holds a minority interest in a 187-km high-pressure pipeline between Changsha and Changde in China's Hunan province. The Macrolink Group, a diversified company with operations in ceramics, automobile manufacturing, chemicals, real estate, liquor and wine manufacturing and distribution and energy, will retain the remaining 30% stake in BMG.
AEI's Chief Executive Officer in Asia, Colin Tam, commented on the developments: "The acquisitions of Tongda Energy and BMG represent AEI's first investments in Mainland China. Both companies complement AEI's existing gas distribution projects around the world and represent an area in which we already have substantial global expertise. They also provide a solid platform for future growth for AEI in China."
AEI opened its Hong Kong office in April 2007, and its activities in Asia are focused on managing the Company's growing presence and seeking expansion opportunities across the region.
About AEI
AEI is a company that owns and operates essential energy infrastructure businesses in emerging markets worldwide. AEI manages interests in a group of 38 energy companies with operations in 19 countries and more than $2.7 billion in revenues (2006 pro forma) and approximately 12,300 employees. The Company serves more than 6.1 million customers worldwide by operating businesses in Power Distribution, Power Generation, Natural Gas Transportation and Services, Natural Gas Distribution, and Retail Fuel, with approximately 40,000 km of gas and liquids pipelines, 160,000 km of power distribution lines, over 1,500 gasoline stations and a gross installed capacity of 1,735 MW. You can visit the AEI website at www.aeienergy.com.
