New | China Gas pays $1.63b yuan for gas unit of Beijing Enterprises
China Gas, one of the mainland’s largest city gas distributors, plans to acquire a gas unit from Beijing Enterprises Holdings, for 1.63 billion yuan (HK$2.1 billion), according to a filing with the Hong Kong stock exchange on Thursday.
China Gas said it will finance the deal by paying its shares, which are valued at HK$13.84 apiece, or a 1.4 per cent discount from Wednesday’s closing price of 14.04.
At 10 am in Hong Kong, shares of China Gas surged more than 5 per cent to HK$14.8, while Beijing Enterprises stock dropped slightly by 0.7 per cent to HK$62.
After the acquisition, China Enterprises’ stake in China Gas will increase to 24.68 per cent, up from 22.44 per cent, according to the company’s statement to the exchange.
The acquisition will take about 10 business days to complete.
On a separate note, Beijing Enterprises, the Hong Kong-listed natural gas distribution arm of the Beijing municipal government, has agreed to acquire a 49 per cent stake in Tangshan Gas from its parent for 419.8 million yuan (HK$530.6 million), as part of the internal reorganisation.
