Andatee China Marine Fuel To Buy Majority Stake In Mashan Xingyuan

Date:2010/6/03/ 14:17

May 24, 2010 (FinancialWire) -- Andatee China Marine Fuel Services Corp. (NASDAQ: AMCF), an operator engaged in the production, storage, distribution, wholesale purchase and sale of blended marine fuel oil for cargo and fishing vessels in Northern China, said it has signed an equity transfer agreement under which Andatee is to acquire 52% equity of Mashan Xingyuan Co., Ltd., a company located in Rongcheng CityRongcheng City, Shandong Province, PRC.

Under the terms of the agreement, Andatee will acquire 52% of Mashan Xingyuan for a cash payment of RMB 3.64 million (around US$ 0.54 million) and the assumption of RMB 0.54 million in debt.

In exchange, Andatee will gain control of Mashan Xingyuan's assets, which include three 1,000 cubic meter storage tanks, three 500 cubic meter storage tanks, equipment and facilities, as well as 3,600 square meters of land use rightsland use rights.

Mashan Xingyuan was founded in Rongcheng, Shandong province and is a blended marine fuel retail outlet in the region. Andatee's sales in that region were 3,000 tons of marine fuel in 2009, according to Andatee.

Andatee estimates that the market opportunity at Mashan Xingyuan's facility can reach 12,000-15,000 tons of marine blended oil annually within 12 to 18 months of completing the acquisition.

China-based Andatee China Marine Fuel Services is engaged in the production, storage, distribution, wholesale purchase and sale of blended marine fuel oil for cargo and fishing vessels in Northern China. The firm maintains operations in Liaoning, Shandong and Zhejiang Provinces in the People's Republic ofthe People's Republic of China.

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