Rodman & Renshaw Outperform On Longwei Petroleum Investment
Rodman & Renshaw has an Outperform rating and a $6 price target on shares of Longwei Petroleum Investment Holding Ltd (NYSE: LPH).
In a note to clients, Rodman & Renshaw writes, "Longwei Petroleum Investment Holding Ltd (LPH) announced today that it has increased the deposit for the purchase of Haujie Petroleum Co., Ltd assets to RMB 550 million ($85.1 million) or 78.6% of the total purchase price. We remind that on March 14, 2011 Longwei signed a letter of intent with Shangxi Jiangtong Chemicals Co., Ltd to acquire the assets of Jiangtong's wholly owned subsidiary Haujie Petroleum Co., Ltd. including 100,000 MT storage tanks, a special transportation railway line, a 3,000-square-meter office building and land use rights for 98 acres of land adjacent to the main regional rail line for RMB 700 million or $108.3 million at the current exchange rate. According to the original agreement, Shangxi Jiangtong Chemicals Co., Ltd would transfer the ownership of the assets upon receiving a cash deposit equivalent to at least 50% of the total purchase price and a promissory note for the outstanding amount."
Shares of LPH are down 6 cents to $1.46, a loss of 3.95%.
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