Chinese energy duo extend HKD 16.7bn bid for local gas rival
Two state-run Chinese energy companies have extended their bid for a local gas company until 6 August, the duo said late Friday in listings to Hong Kong’s stock exchange. Mainland oil giant Sinopec and gas distribution company ENN Energy have announced a month’s extension to their joint HKD 16.7 bn offer for rivals China Gas Holdings.
The purchase would see both companies gain control over the country’s widest network of gas distribution projects, currently operating in 151 cities. This is particularly key for Sinopec, as it would make it more competitive towards rival PetroChina’s gas subsidiary Kunlun Energy.
The conditional offer was originally made in December 2011 at around HKD 3.50 per share, making it the first unsolicited takeover bid in Hong Kong. The bid was officially approved Friday by 86 per cent of ENN’s shareholders, company representatives said.
China Gas has rejected the offer as unreflective of the company’s value, with share prices treading consistently above the offer price for much of the year as shareholders resisting the bid attempt to up their holdings. Shares closed at HKD 3.92 on Friday, with China Gas’ major shareholders including Fortune Oil PLC founder Liu Ming Hui and Beijing Enterprises Group.