The Annual Equipment of Pipeline and Oil &Gas Storage and Transportation Event
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September 6th is the deadline for the tender offer from the consortium of ENN Energy Co.(02688.HK) and Sinopec Group (600028.SH) to buy out shares of China Gas Holdings Ltd (00384.HK).
But stock price of China Gas was 4.15 Hong Kong Dollars per share, much higher than the set acquiring 3.5 Hong Kong Dollars per share.
According to Reuters, Liang Yongchang, the co-managing director of China Gas said that 70 percent of its stocks have been bought out by other strategic large shareholders, and transaction prices are much higher than the offered price of the consortium.
The tender offer has been detained for four times after the joint announcement of ENN and China Petro Chemical to acquire China Gas.
Experts close to the matter said that the 9-month acquisition implied the market share distribution of urban gas.
Long time detainment was because of the low offered price from the consortium, said Lin Boqiang, an energy analyst, as the consortium reject to level up acquisition price, stock price has been bet against by the market and other tycoons in the industry.Acquisitions and mergers is the new competition methods after the time of "riding on a horse to enclose market shares".
Tycoons have get hands on acquisitions for a long time.Tianjin Gas Group set up a joint venture to participate in gas programs in Chongqing,Kunlun Energy's acquisition of 60 percent of CNPC's pipeline company in Beijing has been approved by Ministry of Commerce. Hong Kong and China Gas Co. Ltd has also stepped into mainland to participate provincial gas programs.
The acquisition of China Gas is also a battle between foreign strength and local strength, since strategic shareholders includes SK Group from Korea and Oman Oil Co.
Along with the rapid development of China's energy industry, China Oil & Gas Pipeline network is experiencing unprecedented great structure, large-scale construction and giant leap. Read More >
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