Tianjin eyes GEM for gas-fuel unit

Tianjin Development Holdings, the SAR listed arm of the Tianjin municipality, said it was considering spinning off its newly acquired gas-fuel supply business to the Growth Enterprise Market.

Dong Ming, executive deputy general manager of Tianjin Development, said the company would consider a separate listing of Wah Sang Gas Investment Group.

However, he said they had to discuss further the listing plan with Wah Sang's major shareholder - Charlie Shum Ka-sang, who holds a 60 per cent stake in Wah Sang.

Tianjin Development announced last Friday that it would spend $82 million to acquire a 40 per cent stake in gas-fuel supply business Wah Sang Gas from its mainland parent.

Wang Guanghao, the chairman of Tianjin Development, said Wah Sang Gas had potential as demand for natural gas in Tianjin, Beijing and Hubei suburban areas was huge.

Tianjin Development said Wah Sang would need to invest a further $400 million in the next five years to expand its capacity to fulfil the new contracts on hand.