Pacific Concord Holding chairman Wong Sai-chung has attempted to talk up his indirectly owned petroleum distributor Keeling International in a bid to convince minority shareholders to approve its injection into Pacific Concord.
Mr Wong said there would be substantial growth in demand for petroleum products on the mainland and Keeling was expected to provide a strong earnings base for the company.
Pacific Concord announced last month Concord Oil Group, a company controlled by Mr Wong, would inject a 33 per cent stake in Keeling into Pacific Concord for $2 billion.
Of the acquisition price, $1.4 billion will be paid for through the issue of 414.2 million new Pacific Concord shares at $3.38 each.
That could boost the stake owned by Mr Wong and his associates to 72.52 per cent, from the existing 66.59 per cent.
The remaining $600 million will be paid for in cash.
The deal is subject to approval from independent shareholders in an extraordinary general meeting to be held on December 22.
