Fortune Oil Updates on Shareholding in China Gas

Fortune Oil announced the following development regarding its shareholding in China Gas Holdings Ltd (CGH) which is held through China Gas Group Limited (CGG), a joint venture company between the Company and Mr Liu Minghui.

As detailed in the Company’s announcement on 17 February 2012, CGG entered into an arrangement with a private company (Fortune Max) controlled and beneficially owned by Mr Daniel Chiu, a director and substantial shareholder in the Company, in order to help finance the purchase of CGH shares. Pursuant to this arrangement, Fortune Max subsequently purchased CGH shares and agreed to sell any such shares purchased to CGG at cost, as and when called upon by CGG.

CGG has now put in place its own financing capability to acquire all the 207,968,000 CGH shares previously purchased by Fortune Max and has completed the acquisition of such shares from Fortune Max. As a result of this transaction, Fortune Max no longer holds any CGH shares. Under the terms of the arrangement with CGG, Fortune Max has generated neither profit nor incurred any loss from its transaction in CGH shares. The average purchase price of the CGH shares was HK$3.831, before finance costs and other transaction costs which were absorbed by CGG directly.

Following this transaction, CGG owns 702,446,000 CGH shares, representing 15.37% of CGH’s total issued shares.

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Source: Fortune Oil, April 16, 2013