By Yvonne Lee
HONG KONG--Fortune Oil PLC (FTO.LN), a U.K.-listed company, and
its associate Liu Ming Hui increased their stake in China Gas
Holdings Ltd. (0384.HK) to 17.71%, according to a disclosure to the
Hong Kong Securities and Futures Commission on Tuesday.
Fortune Oil, which is controlled by businessman Daniel Chiu, and
China Gas founder Mr. Liu bought more than 1.92 million shares of
China Gas on Friday at between HK$3.84 and HK$3.86 each, the
statement said.
China Gas's major shareholders--Fortune Oil, Mr. Liu, Beijing
Enterprises Group Co., South Korean energy company SK Group and its
gas subsidiary--have all been increasing their stakes in the
company since ENN Energy Holdings Ltd. (2688.HK) and state-owned
giant China Petroleum & Chemical Corp., or Sinopec, launched a
$2.15 billion, HK$3.50 a share takeover attempt for the company in
December.
China Gas' stock is now hovering around HK$3.87 and ENN's
shareholders are due to vote on the proposed bid Friday.
China Gas, which controls gas pipelines that serve more than 6
million customers in China, has said in previous statements that
Sinopec and ENN's offer failed "to reflect its fundamental
value."
Gaining a controlling stake in China Gas, which has a market
capitalization of HK$16.96 billion (US$2.2 billion), wouldn't come
cheap. But the heightened competition for the company highlights
the industry's view that China Gas, which has exclusive rights to
operate pipelines in 151 cities across China, is a prize worth
chasing.
Last week, Beijing Enterprises Group, which owns a natural-gas
distributor in China's capital, raised its stake in China Gas, to
17.959% from 14.94%.
Write to Yvonne Lee at yvonne.lee@dowjones.com