Media Focus: Hengtai Aipu Cooperative Combat Large Single Effect Appappears

Hengtai Aipu M & A strategy is playing a synergistic effect.

In December 2013, West Oil International (a wholly-owned subsidiary of West Oil Union) and Antelui Energy Source Co., Ltd. signed the "Letter of Intent for Cooperation between Antelui Energy Source Co., Ltd. and West Oil Union International Co., Ltd. on Oilfield Engineering and Technical Services". The service fee for the first phase is approximately 20 million Canadian dollars per year.

The 20 million Canadian dollar is about 0.108 billion yuan, exceeding the annual operating income of 80.38 million yuan in 2013. At this time, it was just one year after the West Oil Union was acquired by Hengtai Aipu.

Also in January 2013, Hengtai Epp announced that it would increase its capital by 7 million Canadian dollars with over-raised funds, acquiring a 30.41 per cent stake in the company and becoming Antairi's second largest shareholder.

Hengtai Aipu has been making mergers and acquisitions in recent years. In order to rapidly expand new business sectors, Hengtai Aipu has made full use of the financing advantages of the capital market to successfully complete the merger and acquisition of a series of excellent service companies in the industry, and initially realized the basic goal of building a comprehensive oil service company's development strategy.

Among them, in order to establish and expand the geophysical and geological plate, we have successively acquired Beijing Boda Ruiheng Technology Co., Ltd. and Beijing Zhongying Anxin Technology Service Co., Ltd., and invested in the establishment of Xinjiang Hengtai Aipu and Hengtai Aipu Petroleum (Hong Kong) to form a relatively complete geophysical and geological plate.

It has successively acquired Langfang New Saipu Petroleum Equipment Company, Pacific Vision Petroleum Technology Co., Ltd., Chengdu Jinling Energy Equipment Co., Ltd., Xi'an Aohua Electronic Instrument Co., Ltd., Anhui Huadong Petroleum Equipment Co., Ltd. and participated in Canadian Spartek Systems Inc., forming a petroleum equipment manufacturing sector together.

Through the acquisition of Chengdu West Oil United Petroleum Engineering Technology Co., Ltd., Chengdu Omega Petroleum Technology Co., Ltd., and Chengdu West Oil United Drilling Technology Co., Ltd., the petroleum engineering technology service sector was formed together.

Finally, the participation of Antelui and innovative model services RANGE company initially formed the oilfield production increase service package and production sharing business segment.

Hengtai Aipu successfully completed a series of mergers and acquisitions in a short period of three years, which has always been regarded as strange and envious by the industry. In 2013, the regulatory authorities repeatedly invited the chairman of Hengtai Aipu to introduce the experience of mergers and acquisitions. Hengtai Aipu's series of mergers and acquisitions have completed the basic layout of the established development strategy, built an aircraft carrier prototype of an international comprehensive oil service company, and opened up unlimited space for continued growth in future performance.

Under the general downturn in the domestic oilfield service market, Hengtai Aipu reported in the third quarter of 2014 that the company achieved operating income of 0.492 billion yuan, an increase of 35.28 percent over the same period last year, and the net profit attributable to shareholders of listed companies was 93.5296 million yuan, an increase of 16.16 percent over the same period last year. In the winter of the industry, Hengtai Aipu can still be full of spring, and the forward-looking strategic layout is the key to the company's success. It is around the new development strategy that Hengtai Aipu has enriched and completed the main business chain in a timely manner, which has successfully avoided the inevitable industry fluctuations of a single business and achieved the continuous growth of the main business.

Hengtai Aipu oil service industry chain mergers and acquisitions continue to increase, but the company's value is not limited to the simple accumulation of benefits of each sector, but lies in the merger and acquisition after the completion of the synergistic integration effect.

Industry analysts believe that Hengtai Aipu will take advantage of the parent company's technical advantages in exploration and development software, West Oil Union in oilfield engineering, and Boda Hengrui's market advantages to combine new Saipu with Spartek equipment, instruments and other technical advantages. Increase market investment and further increase market share.

At present, Hengtai Aipu continues to promote the M & A strategy and improve its transformation layout. On the evening of October 15th, Hengtai Aipu, which had been suspended for several months, issued an announcement that the company intends to purchase Apex Reservoir Technology (Beijing) Co., Ltd. (hereinafter referred to as "Apex Reservoir") by issuing shares and paying cash. 100% Equity, Xinjiang Cenozoic Petroleum Technology Co., Ltd. (hereinafter referred to as "Xinjiang Cenozoic") 100% equity, it is proposed that Energy Prospecting Technology USA Inc. (hereinafter referred to as "EPT") purchase 100 percent of APEX SOLUTIONS,INC.(hereinafter referred to as "Apex") through cash and raise matching funds not exceeding $280 million. The plan shows that the above-mentioned asset consideration is 845 million yuan, of which the cash consideration is 433 million yuan, the equity consideration is 412 million yuan, and 30,586,479 shares are issued.

After the completion of the Transaction, the Company's total assets, equity and operating income attributable to shareholders of the parent company and net profit attributable to shareholders of the listed company will be enhanced, which will help to enhance the overall scale of the listed company and enhance the profitability of the listed company. At the same time, the company's market expansion ability, anti-risk ability, sustainable development ability and comprehensive competitiveness will also be further enhanced, which is conducive to fundamentally protecting the interests of listed companies and their shareholders, especially small and medium shareholders.

Related links are as follows:

Huicong net: http://info.finance.hc360.com/2014/12/011541303777.shtml

Xinhua: http://qy.bzxhw.com/gdkx/2014-12/01/70304.htm

Sina: http://jl.sina.com.cn/news/hyzx/2014-12-01/1157115953.html

Sohu: http://roll.sohu.com.im/20141201/n3894932613038.html

　　21CN : http://life.21cn.com/zaojiao/xiaofei/a/2014/1201/16/28655377.shtml

Phoenix: http://www.joyhouse.com.cn/2014/1201/25603.html

netease: http://hebei.news. Kan

in the new network:http://www.heb.chinanews.com/cjdt/201412014303.shtml

china network of finance and economics:http://finance.china.com/fin/kj/201412/01/8212297.html

Securities Star:http://life.stockstar.com/2014/shenghuozixun_12/30955.html

Jinghua Network:http://qiye.jinghua.cn/html/sx/2014/1201/115533.html

china shares financial network:http://finance.huagu.com/rdsm/1412/315945.html

Public Network:http://www.dzwww.com/xinwen/jishixinwen/201412/t20141201_11465337.htm

bright net:http://liuxue.gmw.cn/2014-12/01/content_14021435.htm