Sinopec/ENN bid for China Gas

Sinopec and ENN launch hostile bid for China Gas

China Gas, whose chairman is under house arrest in Shenzhen, has become the subject of an unsolicited offer from ENN and Sinopec.

Natural gas distributor ENN Energy and state-owned China Petroleum Chemical Corp Sinopec have launched a rare Hong Kong hostile takeover in a bid to win control of China Gas, another distributor.

It is the first time a Chinese state-owned enterprise has backed an unsolicited offer in the city, putting China Gas in a difficult spot as it continues to struggle in the wake of its chairman’s arrest last December on suspicion of embezzlement. He remains under house arrest in Shezhen.

According to a statement made to the stock exchange in Hong Kong yesterday, the two bidders are offering to pay HK$3.50 a share in cash for...

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