March 21, 2010 (FinancialWire) — China New Energy Group Co. (OTCBB: CNER) said it has recently entered into an equity transfer agreement to acquire a 70% equity interest in Beijing Century Dadi Gas Co., Ltd. and its affiliated companies.

Dadi Gas is primarily engaged in the business of the supply of natural gas and construction and development of a gas pipeline network in Northern China.

China New Energy said the total purchase price has not yet been determined, but will be based on a multiple of Dadi Gas's net profits for the fiscal year ended December 31, 2009 and has been capped at RMB 392.15 million (around $57.5 million).

The transaction's closing is contingent upon certain conditions being met, including the successful transfer of all Dadi Gas's permits and other rights to operate its urban gas pipelines.

China-based China New Energy Group is a vertically integrated natural gas company engaged in the development of natural gas distribution networks, and the distribution of natural gas to residential, industrial, and commercial users in small and medium sized cities in China.

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