China Gas to sell HK$11.6b new shares for expansion

Business | 22 Apr 2021 9:06 am

China Gas Holdings plans the sale of HK$11.66 billion (US$1.50 billion) worth of new shares to major shareholders, to raise capital for gas projects and expansion, Reuters reports.

It plans to acquire city gas projects in China, and expand and develop liquefied petroleum gas and distribution heating businesses.

The gas services provider has agreed to sell 392 million new shares, or 6.99 percent of the enlarged share capital, to shareholders Beijing Enterprises Holdings and China Gas Group, it said in a filing to the Hong Kong bourse on Thursday.

The new shares will be issued at HK$29.75 apiece, representing a 9 percent discount to Wednesday's close of HK$32.70.

The shareholders will buy the new shares on completion of sales of the same amount of existing shares at the same price to third party investors.

Beijing Enterprises' stake in China Gas will be diluted to 22.11 percent following the deal, from 23.77 percent, while China Gas Group's stake will be reduced to 13.69 percent from 14.71 percent.

UBS AG and Goldman Sachs (Asia) are the placing agents.

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