Beijing Enterprises Holdings Ltd announced plans to acquire 22.01% stake claim in the gas pipelines operator, China Gas Holdings Limited. The deal was tagged HKD8.22 billion or US$1.06 billion. Beijing Enterprises Holdings Ltd said that they plan to strengthen their position in China's natural gas sector. Beijing Enterprises Holdings Ltd will buy the stakes from its parent company Beijing Enterprises Group Company Limited at KHD7.80 each.
Beijing Enterprises Holding Ltd owns and operates a number of businesses, including sewage and water treatments and brewery operations located in mainland China. Under the terms of the deal, Beijing Enterprises Holding Ltd will pay HSD2 billion in cash and will of 113.13 million new shares to its parent, Beijing Enterprises Group Company Limited, priced at HKD55 each share. The deal will increase Beijing Enterprises Group Company Limited's stake in Beijing Enterprises Holdings from 57.86% to 61.59%.
China Gas Holdings Limited is an investment holding company which acts as a natural gas services operator in the People's Republic of China. China Gas Holdings Limited operates through five segments: Zhongyu Gas, Gas Connection, Sales of Piped Natural Gas, Sales of LPG, Sales of Coke and Gas Appliances.
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