Chinese billionaire Wang Yusuo's plan to take full control of ENN Energy through top shareholder ENN Natural Gas collapsed on Friday, scuttling a deal that valued the Hong Kong-listed firm at US$11.6 billion (HK$90.9 billion).
The offer lapsed after failing to secure preconditions, including approval in principle from the Hong Kong Stock Exchange and clearances from Chinese regulators, nearly a year after the application process began, the companies said.
ENN Natural Gas, which already owns over 34 percent of ENN Energy, had offered HK$59.48 billion for the remaining stake at HK$80 per share — a 47.6 percent premium to the stock's last close before the offer was disclosed.
The deal aimed to streamline ENN Natural Gas' operations at a time when gas operators face pressure to integrate their upstream and downstream resources to better respond to shift in the global supply chain. China is the world's largest importer of oil and gas.
The companies had extended the long-stop date earlier this year but said the timetable for securing approvals remained uncertain despite "substantial efforts".
The collapse means ENN Energy will remain listed in Hong Kong and no scheme document will be issued, while ENN Natural Gas will not proceed with a related listing filed in December.
Hong Kong takeover rules bar the bidder from launching another offer for ENN Energy for 12 months without regulatory consent.
Despite abandoning the privatisation plan, ENN Natural Gas said it intends to gradually increase its shareholding in ENN Energy, depending on market conditions, signalling continued strategic interest in the firm.
Both companies are part of ENN Group, one of China's largest private energy groups, controlled by billionaire Wang Yusuo, whose net worth Forbes estimates at US$8 billion.
Reuters
