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Towngas China announces strategic investment from Affinity Equity Partners to accelerate evolution into a leading integrated smart energy company

Monday, October 25, 2021


(Press Release) - Towngas China Company Limited (“Towngas China” or the “Company”, stock code: 1083) and Affinity Equity Partners (“Affinity”) today jointly announce that Affinity Asia Pacific Fund V (“Affinity Fund V”) will invest HK$2.80 billion into Towngas China, representing 13.3% of the enlarged capital of Towngas China on a fully diluted and as converted basis. Towngas China will issue 116,783,333 new shares at the price of HK$5.00 per share and convertible bonds in the principal amount of HK$2.22 billion at a conversion price of HK$6.33 per share. The investment will support Towngas China’s evolution into an integrated clean energy provider, accelerate the roll-out of distributed solar photovoltaics as part of the smart energy solution and secure long-term growth.

To reflect the new strategic focus, and with effect from 25 October 2021, Dr. Peter Lee Ka-kit has been appointed Towngas China’s new Chairman. At the Company’s upcoming Extraordinary General Meeting (EGM), it will be proposed that Towngas China be renamed as Towngas Smart Energy Company Limited. Affinity Fund V will nominate one representative to act as a member of the Board of Directors of Towngas China and will also sit on the newly formed Strategic Committee which will report to the Company’s Board. This will allow Affinity Equity Partners to consult on the Company’s overall business planning and strategic decision-making.

This partnership with Affinity enables Towngas China to accelerate its long-term vision to create an integrated, sustainable and tangible smart energy business, built on three core pillars: integration, digitalisation and decarbonisation.

 

View full announcement here