HONG KONG, Jan. 12, 2015 /PRNewswire/ -- Anton Oilfield Services Group ("Anton Oilfield" or the "Group", HKEx stock code: 3337), the leading independent integrated oilfield services provider in China, is pleased to announce that the Group entered into a transaction agreement on January 11, 2015 with sellers who are independent third parties for the acquisition of 55% equity interest in two companies ("the target companies") newly established by the sellers in mainland China and Hong Kong respectively.
Prior to the completion of the transaction, the sellers will transfer the operating assets and business of Beijing KMS Oilfield Chemicals and Technology Ltd. ("KMS") to the target companies which will mainly be engaged in the oilfield chemicals business.
The consideration for the transaction stands at an aggregate amount of RMB100.55 million. Anton Oilfield will effect the payment of the consideration in installments in accordance with the terms of the transaction agreement.
At the time of the acquisition, the assets that will comprise those of the target companies had a net asset value of no less than RMB60 million. According to the agreement, the sellers have warranted that the audited consolidated after tax profit of the target companies for the period from January 1, 2015 to December 31, 2015 shall be no less than RMB30 million. Anton Oilfield shall be compensated if this target cannot be met.
Coming into operation in the first half of 2014, Anton Oilfield's down-hole operation chemicals product line, which offers R&D, production and technical services for down-hole chemicals in acidizing and fracturing operations, will be further strengthened following the acquisition in terms of product portfolios and R&D. The expected synergies between the Group and the target companies, particularly in the area of fracturing services, will be supportive of the Group in refining its integrated stimulation service capabilities, which range from fracturing design, tools to chemicals and equipment capacity. It will also help the Group to focus on its integrated stimulation service, which is a critical customer need among stimulation, optimization, cost reduction, safety and environmental friendliness, and to build a more robust and comprehensive value chain for stimulation service.
KMS is a leader in oilfield chemicals in China equipped with advanced technology, which has won multiple national and provincial awards for its scientific and technological inventions throughout the years. Its technological and R&D strengths lie in oilfield chemicals in areas such as reservoir reformation, sand control and reservoir protection.
About Anton Oilfield Services Group
Anton Oilfield Services Group (HKEx stock code: 3337) is a leading independent integrated oilfield services provider. The Group provides products and services for the entire process of oil and gas development and production, including reservoir management, drilling technology, well completion, down-hole operations, oil production as well as tubular service. With its comprehensive product lines and integrated service capacity, the Group is empowered to help oil companies solve their challenges in increasing production, improving drilling efficiency, lowering costs and optimizing waste management. Its fast growth benefits from the rapid development of natural gas in China and the Group's increased presence in overseas markets. The Group's strategic objective is to become a leading global oilfield services provider with a solid foothold in China.
The Group is headquartered in Beijing and has established an international network across China and overseas markets. In China, its markets cover the Tarim area, Erdos area, Southwest area and other areas of China, whereas its overseas markets include Iraq and other Middle East market, Central Asia and Africa market and the Americas market. Anton Oilfield is the best independent Chinese oilfield services partner, the best Chinese partner worldwide.
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SOURCE Anton Oilfield Services Group