DEAL NEWS: China Natural Gas (CNGL) was the first Chinese based natural gas company to publicly trade in the US and it has sparked new interest by enticing investors with a US$50m public offering on the NASDAQ.
DLA Piper and Jiarui Law Firm led the way for CNGL. Loeb & Loeb and Hankun Law firm acted for Roth Capital, the underwriter. Gene Buttrill and Rocky Lee from DLA Piper were the lead partners from DLA Piper advising on this transaction.
“This is a major deal on many fronts – for our client’s sophisticated expansion plans, for the burgeoning clean energy sector in China and for the environment. It was also a good opportunity for us to work on another cross-border deal with our colleagues in the United States,” said Buttrill. “We believe the success of the offering evidences strong interest from US institutional investors for equity in PRC growth companies. We look forward to working with more companies in this space.”
Buttrill and Lee were assisted by members of DLA Piper’s offices in Phoenix and New York.
Law firms in the PRC should keep an eye out for further activity as CNGL plans to use the net proceeds from this public offering for the construction of a liquefied natural gas facility, the acquisition of fueling stations and trucks and the establishment of a joint venture company with China National Petroleum Corporation Kunlun Natural Gas.