(Oil Price) – Chinese gas and clean energy distribution firm ENN Energy Holdings Limited has been valued at around US$11.6 billion (HK$90.50 billion) under a privatization offer from another ENN affiliate, the companies involved in the proposed transaction said on Wednesday.
Under the proposed deal, ENN Natural Gas – one of the affiliate companies of ENN Energy part of the ENN Group of Chinese billionaire businessman Wang Yusuo – will buy the remaining stake in ENN Energy it does not already hold. ENN Natural Gas currently owns 34.28% in ENN Energy.
The offer from ENN Natural Gas contains an exchange ratio of 2.9427 shares plus a cash payment of $3.15 (HK$24.50) per share for the ENN Energy shares that ENN Natural Gas does not already own.
Accordingly, with 1,131,224,275 ENN Energy Shares in issue as at the announcement date, the entire issued share capital of ENN would be theoretically valued under the proposal at approximately HK$90.50 billion, or US$11.6 billion, the companies said in a filing with the Hong Kong Stock Exchange.
ENN Natural Gas and ENN Energy are two of the four listed firms within the ENN Group conglomerate, which was founded by Wang Yusuo.
ENN Energy invests in the construction, operation, and management of gas pipeline infrastructure and the sales and distribution of piped gas, LNG, and other multi-energy products, it says.
ENN Natural Gas is one of the largest private energy companies in China. It operates more than 250 city gas projects nationwide and has an annual LNG distribution capacity of over 10 billion cubic meters (bcm). ENN Natural Gas also runs the first large-scale private LNG terminal in China — Zhoushan LNG Terminal. The company’s business is in the entire gas value chain, including distribution, trading, storage and transportation, production, and engineering.
The privatization offer for ENN Energy is a major development in China, the world’s biggest oil and LNG importer, which looks to boost its energy security.
By Charles Kennedy for Oilprice.com
