On September 18, United Strength Power Holdings Limited ("United Strength Power"; stock code: 2337.HK) issued an announcement to acquire the entire issued share capital of the Target Company Hengyong Global Investment Co., Ltd. at a consideration of HK$650 million. First Capital International Finance Limited, a wholly-owned subsidiary of China First Capital Group (“CFCG”or“the Group”;stock code:1269.HK), is a joint sponsor in this transaction.
The announcement stated that the consideration for the acquisition comprising (a) 100,000,000 Consideration Shares in aggregate at the Issue Price of HK$5.00 per Consideration Shares; and (b) cash consideration of HK$150 million. The Consideration Shares represent approximately 42.64% of the existing share capital of United Strength Power as at the date of the announcement. Hengyong Global Investment is principally engaged in investment holding and has a 100% interest in Changchun United Strength Power, which is principally engaged in the provision of refueling business, petroleum wholesale business and related transportation services.
United Strength Power operates compressed natural gas, liquefied natural gas and liquefied petroleum gas refueling stations for vehicles, and hybrid refueling and refueling stations for compressed natural gas and liquefied natural gas in Jilin and Heilongjiang provinces. In addition to the above-mentioned refueling stations, it has also expanded its business to LPG and oil transportation through the acquisition of Jieli Logistics Company in March 2018.
The announcement shows that the acquisition is seen as the first step for United Strength Power to enter into a potential new business and is expected to further enhance its visibility in the energy market in northeastern China and to promote its expansion in other parts of China; The acquisition can also make full use of the brand recognition effect of “United Strength Power Chain” and the existing gas station network to expand the fueling business. And the acquisition can create synergies between the Target Group's fueling business and United Strength Power's existing refueling business, thereby enhancing its competitiveness in the energy industry.
The time, First Capital International Finance acted as the joint sponsor of United Strength Power as a new listing application and played an important role in the successful acquisition of the project. On April 15 this year, First Capital International Finance was successfully approved as a sponsor and became one of the 115 sponsors in Hong Kong, further expanding the full-scale business of CFCG's financial services. CFCG is committed to building a globally influential education financial services group. Based on this goal, First Capital International Finance under CFCG mainly focuses on listing sponsorship, underwriting and placing, dealing in securities, financing consultancy, merger and acquisition agency, financial advisory, asset management and other core businesses. In order to extend and deepen the financial services of First Capital International Finance, the Group increased the integration and linkage with overseas markets financial services business such as Singapore, the United Kingdom and the domestic market, and enriched the financial product lines and services, from pre-listing counseling, restructuring, strategic consulting to financial advisory , sponsorship, stock issuance, promotion and project roadshow, introduction of institutional investors in listing, to post-listing compliance operations, M&A financing, etc. Chemical, refined, and companion integrated financial services.
First Capital Securities Under First Capital Financial Group is rooted in Hong Kong's rich financial experience and strong overseas distribution network. During 2018, the Group was engaged in the listing of a total of 12 companies, acting as the joint global coordinator, joint bookrunner, joint lead manager, etc. In addition, First Capital Securities ranked twenty-first on Bloomberg’s list of securities dealers by IPO underwriting business in Hong Kong in 2018 in terms of the number of underwritten projects, and ranked thirtieth in terms of the amount of IPO proceeds raised.
At present, CFCG has obtained a diversified financial service license, and the new development of the sponsor business will also add further assistance to the Group's finance. In the future, with the help of international capital markets and China's multi-level capital market, it will provide feasible solutions for more growth, small and medium-sized enterprises in China and overseas, Hong Kong listing, mergers and acquisitions, financial advisors, etc. And through its excellent customer coverage and marketing capabilities, as well as a strong investment banking team with rich experience in international capital market operations, CFCG has enabled more companies to have a wider selection of international capital markets and help them achieve long-term healthy and sustainable development.