Beijing Enterprises to buy 22pc of China Gas for US$1.1b

PUBLISHED : Tuesday, 30 July, 2013, 1:42pm
UPDATED : Tuesday, 30 July, 2013, 1:42pm

Beijing Enterprises Holdings said on Tuesday it would buy from its parent company 22.01 per cent of city gas pipelines operator China Gas Holdings for HK$8.22 billion ($1.06 billion) to strengthen its position in the Chinese natural gas sector.

Beijing Enterprises Holdings, which also has brewery, sewage and water treatment operations in the mainland, will buy China Gas shares from parent Beijing Enterprises Group Company Ltd at HK$7.80 each, it said in a filing with the Hong Kong bourse.

The deal will be settled with HK$2 billion in cash and by the issue of 113.13 million new Beijing Enterprises Holdings shares at HK$55 each to the parent, increasing the parent’s stake in Beijing Enterprises Holdings to 61.59 per cent from 57.86 per cent.