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Image courtesy of New Times Energy.

New Times Energy sold its downstream natural gas business to Blue Sky Power Holdings for about $36 million Wednesday.

Both businesses are based in Hong Kong.

The transaction will take place in two phases.

Blue Sky will acquire a 51 percent share in Shine Great Investments, an indirect wholly-owned subsidiary of New Times Energy that holds the company’s downstream natural gas assets, during the first phase. The company will acquire the remaining 49 percent during the second phase.

Blue Sky will issue convertible bonds to Times worth $27.4 million and pay about $2 million in cash.

The company will also pay about $4.8 million cash for subscription consideration to Shine Great.

Shine Great holds compressed natural gas and liquid natural gas stations as well as natural gas projects that supply industrial parks and residents in Jiangsu and Guizhou provinces.

After the sale closes, the assets will be held by Goldlink Capital, a wholly-owned subsidiary of Blue Sky.

The sale marks New Times’ exit from the downstream business in China.