Member Info for Del44

Good article on ADC's stake in CGH.... http://www.adb.org/features/peoples-republic-china-breathes-easier-natural-gas?ref=countries/prc/features

The article covers most of what was in the interim but the summary was rather more bullish then usual... However,it is still wrong in its assumptions of our overall stake should we get ALL our shares in CGH.. Summary piece and recommendation. 'The acquisition of the Wilmar stake will effectively increase Fortune's exposure to China's expanding energy market, and drive its jointly held stake in CGH to around 25 per cent. CGH's current market value is HK$38bn (£3.16bn), so Fortune is fundamentally undervalued on this basis alone.' Buy So...we await the Takeover Panel's decision and then the announcement of the General Meeting and all that follows... In the mean time CGH continues to expand its business across China...

Cheers mate.. Good weekend there..

What market is that Chan? Its not through LSE?

http://www.aastocks.com/EN/News/HK6/61/NOW.562595.html

EDC provides USD 250 M in financing to China Gas Holdings to help grow their Canadian supply Thursday 29th August, 2013 China's largest natural gas suppliers. The financing agreement will facilitate CGH's planned procurement from its long-standing Canadian supplier, B.C.- based IMW, a wholly-owned subsidiary of Clean Energy Fuels Corporation. EDC's Senior Vice-President and Global Head of Financing and Investments, The CNG is a big potential revenue stream that CGH is now targeting in a big way... http://finance.yahoo.com/news/clean-energy-imw-subsidiary-supply-183800548.html

Not announced yet.. They need Takeover panel to waiver rule 9 on T/O. $200 million cash due on sale of gas asset....so divi on waiver and General Meeting approval... SP has not gained on news much, so perhaps sp will withstand a divi payout without to much pressure on sp... Becoming an enigma this stock...:)

Will buy a copy this weekend...but normally IC is the kiss of death for FTO, when it comes to its reporting and articles...:) Plus their reporting skills are woeful, when it comes to accuracy of content. So, on second thoughts, perhaps I will just read it off the news stand...:)

Not presently, no... Mainly because under the terms of the sale of the gas asset, there is an unknown variable...namely the average sp of CGH shares in November/December.... This is the related paragraph dealing with conversion of shares..... Under the Deferred Consideration, the Company may elect to request China Gas to replace its entitlement to Deferred Consideration in a maximum number of 250,000,000 shares in China Gas, based on a benchmark share price (the "Benchmark Price") referenced to the average China Gas share price for the 30 consecutive trading days prior to the request made by the Company between 1 November 2013 and 31 December 2013. The issue of China Gas shares under the Deferred Consideration is subject to approval of the China Gas board and the listing permission from the Hong Kong Stock Exchange. So we just don't know what that will be presently.....but I think it will be a lot higher then it is now...:)

Wilmar want cash....So they sold their 15% of gas asset to First Marvel Ltd..Price $60 million... First Marvel Ltd is owned by Daniel Chieu and Vitol Energy (55%-45%) both founding members of FTO. The JV between the 2 is called Fortune Dynasty Holdings Ltd. THEY AND NOT FTO ARE PAYING THE CASH FOR WILMAR'S 15%.... FTO in return are issuing new shares to buy that 15% stake from Fortune Dynasty Holding, so that FTO will end up receiving all the consideration for the gas asset sale. Which is $200 million cash...and another $200 million in possibly shares... Importantly for FTO..it secures our chances of receiving more shares in CGH, that would have gone to Wilmar,who most likely would have sold them in the market for someone else to buy... We are receiving proper assets for the issuing of shares and I am not bothered by any talk of dilution... FTO benefit from this in my view.. If the "City" doesn't understand this...then it clearly explains a lot about the city that many people outside the investment community already knew..

Chris you may be missing something here..Wilmar are not getting FTO shares. They are selling out for cash... Wilmar entered into an agreement with First Marvel Investment Limited ("First Marvel"), effective as of 23 July 2013, pursuant to which, for cash consideration of US$60 million, First Marvel agreed to accept all the rights and benefits and to perform and discharge all liabilities and obligations of Wilmar under the Fortune Gas Sale Agreement (to the extent relating to the period after completion of such agreement). First Marvel is a wholly-owned subsidiary of Fortune Dynasty Holdings Limited ("FDH"). FDH is a joint venture company owned 55 per cent. by First Level Holdings Limited, a company controlled by Daniel Chiu, executive vice chairman and a director of the Company, and 45 per cent. by Vitol Energy (Bermuda) Limited, a member of the Vitol Group of companies of which Ian Taylor, a non-executive director of the Company, is president and chief executive officer. What we get in return is $30 million in cash in first tranche and another $30 million in shares (perhaps) in the 2sd installment around December. So it allows us to get more shares in CGH and help get to "associate Status". The above 2 have put their cash in where it counts.... A good move I think..

Daniel Chiu, Dennis Chiu, First Level Holdings Limited, FDH and Vitol Energy (Bermuda) Limited are deemed to be acting in concert in relation to the Company (the "Concert Party"). The members of the Concert Party are currently interested in an aggregate of 872,744,117 Ordinary Shares, representing approximately 43.9 per cent. of the voting rights of the Company. The issue of new Ordinary Shares to FDH pursuant to the Proposed Acquisition and the Loan Settlement would normally result in an obligation on the Concert Party to make a general offer for the Company, pursuant to Rule 9 of the Takeover Code. If the Panel agrees to the Rule 9 Waiver and if the Rule 9 Waiver resolution is passed by independent shareholders in general meeting, following the issue of Ordinary Shares in connection with the Proposed Acquisition and the Loan Settlement, the Concert Party will control approximately 56.9 per cent. of the Ordinary Shares and hence will have the ability to increase its interests in the issued share capital of the Company without having to make a general offer for the Company under Rule 9 of the Takeover Code. In addition, Daniel Chiu and First Level Holdings Limited will control approximately 51.2 per cent. of the Ordinary Shares following the issue of Ordinary Shares in connection with the Proposed Acquisition and the Loan Settlement and will be free to increase their interests in the issued share capital of the Company without incurring an obligation to make a general offer for the Company under Rule 9 of the Takeover Code. Other members of the Concert Party will individually continue to be subject to obligations under Rule 9 of the Takeover Code unless the Panel consents to waive those obligations in accordance with Note 4 to Rule 9.1 of the Takeover Code.

I would hope the takeover panel in the UK would be speedier then MOFCOM over in China...:)...LOL

Closer ties are now been formed with BEHL... http://www.noodls.com/viewNoodl/19827217/behl---beijing-enterprises-holdings-ltd/strategic-co-operation-framework-agreement-with-china-gas

We live in hope..... Regardless of the current sp, the company is taking some very big strides in China.

No date yet for special divi..Clearance from Mergers Commission firstly, then general Meeting to follow... Link... http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FTO&ArticleCode=hjea2hcb&ArticleHeadline=Proposed_Acquisition_and_Loan_Settlement Also half yearly report rounds it up... http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FTO&ArticleCode=yfwqh50w&ArticleHeadline=Half_Yearly_Report

Wonder if you had any view on this now? Thanks..

Yeah and I noticed they kept the bid just shy of the 8.80p mark to hold back triggers...:)

I don't think there has been any concrete date for the payment of the special dividend as of yet... A general meeting has yet to be called, to vote on these proposals a long with the waiver from mergers commission...So no October date yet announced...

Reported that a while back alright.... Found this from another poster on Moneyam recently....makes for interesting reading and food for thought. Ruthbaby from a competitor BB... I am not sure what the next news flow is here..as the gas component is now gone. A regular poster on another board seems to think that the price above 8.80p on the bid is a vital next move (not sure why)up. To be honest..I am surprised the sp did not fall more after the very boring results yesterday... But I am getting more optimistic that the big seller is now finished and we may find that the buyers are now more comfortable that stock is not now going to be dumped. Also most of the big volume trades are now on the buy side. This could be in anticipation of the next announcement which may be associate status been granted. If it were the case an acquaintance of mine has said it could mean as much as £33.9 million before tax profit, been attributed to FTO on a consolidated bases, based on CGH's 2012/2013 year end profits recently announced..which were in GBP £169 million. That plus our remaining groups profits could put us close to nearly £50 million before tax!!!! Not including CGH stake and cash from deal... With gearing around 21% and very manageable...this stock is beginning to come through the smoke of the last year in an exceptional position and will no doubt soon attract serious attention... Big top up completed today on this new information and please....EVERYBODY DO YOUR OWN RESEARCH...but don't take forever..