Fortune Oil acquires China Gas shares
Fortune Oil has increased its interest in China Gas Holdings through an acquisition of 13,252,000 shares.
The shares were acquired from the China Petroleum & Chemical Corporation as part of a share placement. The shares were acquired at a price of HK$14.80, a 5.1% discount to the closing price on the date the acquisition was made on 13 August 2014.
Due to logistical constraints on the date the acquisition was made, the Acquired Shares were allotted to First Level Holdings Limited, a substantial shareholder of the company and private company controlled and beneficially owned by Daniel Chiu, a director of the company.
The board has acknowledged an arrangement between Fortune Oil and FLH, where FLH will transfer all the allotted shares at cost (i.e. no profit or loss) to the company, at the earliest convenience. The company will indemnify FLH against all costs associated with the acquisition, financing and transfer of any acquired shares. The transfer is expected to be executed in coming days.
The acquisition represents approximately 0.26% of the issued capital of China Gas. Upon the transfer from FLH, the company’s interest in China Gas will be 934,745,463 shares, or approximately 18.62% of total issued shares of 5,021,048,561, per China Gas’ most recent disclosure. This includes 737,374,000 shares already held by China Gas Group Limited, the joint venture company in which Fortune Oil has a 50 per cent interest, and 184,119,463 shares already held directly by the company.
Press Release, August 20, 2014; Image: China Gas