China Gas Bid Too Low

摘要

Hong Kong-listed China Gas Holdings has rejected a joint acquisition offer of $2.15 billion from Sinopec and ENN Energy, saying it is too low. In a filing to the stock exchange, China Gas said the bid was “unsolicited [and] opportunistic” and failed to reflect the fundamental value of the company. Sinopec and ENN on Tuesday said they offered up to HK$16.7 billion to seal the deal, which translated into HK$3.50 for each China Gas share — representing a 25% premium to the closing China Gas share price on Dec. 9 (IOD Dec.14’11). ENN was to have financed 55% of the acquisition while Sinopec was to be responsible for the remaining 45%.