Fortune Oil Share News (FTO)

Fri, 6th Jul 2012 08:01

HONG KONG, July 6 (Reuters) - Chinese city gas distributor ENN Energy Holdings' shareholders have approved the firm's proposed HK$3.50-per-share joint offer with Sinopec for rival gas supplier China Gas Holdings, an ENN executive said on Friday, paving the way for them to launch a formal offer.

'According to preliminary calculation, the proposal has won extremely strong support from shareholders,' ENN CFO Wilson Cheng told reporters after a meeting of ENN shareholders to vote on the proposed offer.

In December, Sinopec and ENN made a conditional cash offer of about $2.2 billion for China Gas, making it the first unsolicited takeover bid in Hong Kong.

China Gas rejected the offer, saying it failed to reflect the true value of the company, and its share price has since traded consistently above the offer price as some of its key shareholders jostled to raise their stakes in the company.

Sinopec and ENN have yet to secure necessary Chinese regulatory approval before moving ahead with a formal offer.



(Reporting by Alison Lui and Charlie Zhu; Editing by Alex Richardson and Ryan Woo) Keywords: CHINAGAS SINOPEC/ENN

(charlie.zhu@thomsonreuters.com)(+852 2843 1649)(Reuters Messaging: charlie.zhu.reuters.com@reuters.net)

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