Chinese gas and clean energy firm ENN Energy Holdings Limited has been valued at approximately US$11.6 billion (HK$90.5 billion) in a privatization offer, the companies involved announced on Wednesday.
The offer comes from ENN Natural Gas, an affiliate of ENN Energy and part of the ENN Group, founded by Chinese billionaire Wang Yusuo. ENN Natural Gas currently holds a 34.28% stake in ENN Energy. Under the proposed deal, ENN Natural Gas will purchase the remaining shares of ENN Energy.
The offer includes an exchange ratio of 2.9427 shares, along with a cash payment of HK$24.50 (US$3.15) per share for the shares ENN Natural Gas does not already own.
With 1,131,224,275 ENN Energy shares outstanding at the time of the announcement, the deal would value the entire company at about HK$90.5 billion, or US$11.6 billion, according to a filing with the Hong Kong Stock Exchange.
Both ENN Natural Gas and ENN Energy are part of the ENN Group, which also includes two other listed companies. ENN Energy is involved in the construction, operation, and management of gas pipeline infrastructure and the distribution of piped gas, LNG, and other multi-energy products.
ENN Natural Gas, one of China’s largest private energy companies, operates over 250 city gas projects nationwide and has an annual LNG distribution capacity of more than 10 billion cubic meters. It also runs China’s first large-scale private LNG terminal, the Zhoushan LNG Terminal, and its business spans the entire gas value chain, including distribution, trading, storage, transportation, and production.
This privatization offer marks a significant development in China’s push to enhance its energy security, as the country is the world’s largest importer of oil and LNG.
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