Member Info for Del44

7 August 2013 Fortune Oil PLC ("Fortune Oil" or the "Company") Proposed Acquisition and Loan Settlement Proposal to seek a waiver of an obligation to make a general offer under Rule 9 of the Takeover Code and Proposed Special Interim Dividend Summary The Company is pleased to announce that it will be putting inter-conditional proposals to shareholders in General Meeting as follows: · The acquisition of Wilmar International Limited's interest in the consideration receivable as a result of the conditional disposal of Fortune Gas Investment Holdings Limited. The total consideration is US$60m payable to Fortune Dynasty Holdings Limited, a member of the Concert Party (described below), in Ordinary Shares in Fortune Oil (the "Proposed Acquisition") · Subject to the waiver from the Takeover Panel described immediately below, amendment of a loan received from Fortune Dynasty Holdings Limited amounting to US$12m, such that it will be repayable in shares in Fortune Oil (the "Loan Settlement") · Waiver to be sought from the Takeover Panel, and of shareholders, of the requirements of Rule 9 of the Takeover Code for a general offer to be made for the Company by parties (the "Concert Party") who, by receiving Ordinary Shares through the Loan Settlement and the Proposed Acquisition, would own more than 56.9% of the Company's issued share capital · Proposed special interim dividend of 2.36 pence per Ordinary Share (the "Special Dividend") The Company intends, subject to approval by the Panel, to send a circular to shareholders (the "Circular") providing information about the Proposed Acquisition, the Loan Settlement, the Special Dividend and members of the Concert Party, convening a general meeting of the Company at which the Rule 9 Waiver resolution and the payment of the Special Dividend will be put to a vote of the shareholders of the Company. The date of the general meeting of the Company has not yet been set but it will be held as soon as practicable. Tee Kiam Poon, Chief Executive of the Company, commented: "The proposals set out in this announcement, as explained more fully in the section entitled 'Reasons for the proposals', are designed to ensure that the Company receives maximum value for the sale of Fortune Gas Investment Holdings Limited, whose growth will be to the benefit of all shareholders. It is very important that appropriate investment is made in this asset while we await completion of its sale and these proposals, once implemented, will achieve that. It is expected that these proposals will ultimately provide additional sources of demand for, and improve the marketability of, the Ordinary Shares of Fortune Oil. We are also very pleased to announce that shareholders will receive a special dividend, which recognises th

Just simplifying the original contract of sale...which makes more sense... Dont want any sudden price rises this side of next Thursday's drip divi payment... So happy for it to drift lower for the moment...:)

That would be about right....

Morning.. You will find it here in graphic... http://www.scmp.com/business/commodities/article/1293236/beijing-enterprises-china-gas-play-may-be-nationwide-expansion BEG...22%... CGG...21% S&K...15% Sinopec...4.39% Gail...4.39....

Beijing Enterprises' China Gas play may be nationwide expansion vehicle.......... Energy-to-brewery conglomerate Beijing Enterprises Holdings may use its China Gas unit as a vehicle for nationwide expansion in gas distribution, raising the risk of a boardroom clash over strategy, analysts say. Although the ownership transfer from the parent to BJE does not immediately affect China Gas shareholders, the fact that BJE will own 22 per cent of the company - slightly more than China Gas chairman Liu Minghui's 21.12 per cent - could lead to changes in management at China Gas. Asked if BJE would seek to exert more management control over China Gas, chief financial officer Jimmy Tam Chun-fai told the South China Morning Post: "[BJE] will definitely demand more board seats and even some important positions." The full article is here.... http://www.scmp.com/business/commodities/article/1293236/beijing-enterprises-china-gas-play-may-be-nationwide-expansion

On the day of the dive been issued, they buy shares in the open market with your amount. A small amount is with held for costs as they are buying in the market and not actually issuing any new shares... There was quite a bit of buying on the day last year....... So I am in no hurry to see any price rise at the moment but as I posted earlier...I have my suspicions on the matter....

Their reasons are purely speculative on my part. L&G have been net sellers for over a year now and since before the loss of premium listing if my memory serves me... I don't see any reason for it to improve in the short term either... Clearly if FTO get approval for the gas sale and the subsequent associate status with CGH, then it could easily have an impact on the sp... I speculate selling by L&G...but they may be happy to drop below 3% from their point of view without further selling... News flow may help. But to be honest...I am receiving my shares through the drip programme so I am more then happy(as are many other investors I suspect) to see the sp languish at these levels up to and including the 15th of August, when the divi is paid out... But I have my suspicions about that too...:)

L&G have gone below 3% recently and no longer have to inform the market of any share sales.. Also heard that BlackRock Investment Management (UK) Ltd. have been selling... These 2 alone hold about 108 million between them...In the past it has been difficult to buy large amounts of shares on the market in FTO.. Liquidity is poor....But large parcels are been sold on around these levels. That can be a good thing... But it means any demand for the shares are been met with this current price...

Would never attempt to guess where any share price will be on a public forum like this... But my own impressions are that there is still a perception by the market, that there is a large over hang of stock out there and so moving higher is not an option at the moment. Large blocks of stock can now be bought and can be seen going through after delayed trades..sometimes days later.. It just means it is all been absorbed by the seller... But no point if you are a MM, to tick the price higher when there is plenty to be bought around this level for the foreseeable future.... News flow may help absorption quicken...

For the JV to remain a 50/50 JV...then FTO and Minghiu would match each other...Yes. Regarding the Dividend..it is paid to CGG. But its worth remembering that CGG is self financing in these purchases... CGG has now put in place its own financing capability to acquire all the 207,968,000 CGH shares previously purchased by Fortune Max and has completed the acquisition of such shares from Fortune Max. As a result of this transaction, Fortune Max no longer holds any CGH shares. I am sure the divi is going towards paying interest on possible financing thus far. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FTO&ArticleCode=2pxqyweu&ArticleHeadline=Acquisition_of_China_Gas_shares_from_Fortune_Max Fortune Max no longer a holder..

Just to clarify, what I believe always causes the mix up when attempting to figure out FTO holding.. MR Liu Minghiu holds shares that have not been injected into CGG. They are his personal stake and are therefor not committed to CGG..yet. However because of the recent failed T/O attempt...they are still deemed one party. So Mr Liu Minghiu holdings and CGG holdings, are sometimes lumped together as CGG....which they are clearly not. Hope this helps..

CGG was set up as a 50/50 JV between FTO and MR Liu Minghiu... The strategic objectives for Fortune Oil to invest in CGH and to form this joint venture with LIU Minghui areto combine its strengths with those of LIU Minghui and to explore opportunities to grow Fortune Oil's natural gas business in China. More importantly Mr. LIU's vast experience in China's natural gas industry is expected to accelerate the growth of Fortune Oil's natural gas business. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FTO&ArticleCode=fx3k9ot5&ArticleHeadline=Strategic_Investment FTO's holding is through CGG... ONLY. MR Liu has a share holding not injected into CGG. CGG owns 702,446,000 CGH shares, representing 15.37% of CGH's total issued shares. FTO, as 50% JV holder, owns half that...

The deal does not affect the amount of CGH shares in issue.. The stake has merely been bought by BEHL from BEG its parent company. The current sp of CGH is more reflective of its current trading position. The fact that the stake is been bought at this price compared to an average of around HK$4 paid by BEG only last year and in comparison to the bid price of just over a year ago at HK$3.50 per share, shows how the market has rerated CGH. The divi is clear...they want to increase the ratio of dividend payout to atp to shareholders going forward to around 30%... With the expansion in gas consumption this looks possibly. FTO have stated they could see buying up to 29.9% in CGH through CGG... I think the purchase of a block of 22% for HK%7.40 gives us a realistic price for our own holding.. It has doubled in value since we bought it...:)

BEHL’s deal for China Gas is in the pipeline Beijing Enterprises Holdings (BEHL) is increasing its exposure to China Gas Holdings by paying HKD 8.22 billion (USD 1.06 billion) to its state-owned parent for a fifth of the natural gas supplier’s equity. The Hong Kong-listed brewery-to-water treatment company is offering HKD 7.40 per stock to Beijing Enterprises Group in return for a 22.0 per cent stake. BEHL’s deal represents an 11.7 per cent discount to the Bermuda-incorporated utility’s close yesterday and is a premium of 210.8 per cent to the net asset value attributable to shareholders of roughly HKD 2.51 as at 31st March 2013. China Gas is a holding company owning investments in the People’s Republic. Activities include the construction and operation of city gas pipelines, the transmission of natural gas and the sale of liquefied petroleum gas to domestic residential, industrial and commercial users. According to the 2013 annual report, the group owns 184 city gas projects, representing one of the largest portfolios in the country. China Gas also invests in associated infrastructure such as gas terminals, storage and transportation facilities and vehicle refilling stations. Further activities include developing and applying technologies relating to petroleum, natural gas and liquefied petroleum gas. It booked net profit of HKD 2.04 billion in the financial year ended 31st March 2013 (FY 2012: HKD 1.14 billion). Suitor BEHL is incorporated in Hong Kong as a holding company with investments in natural gas, brewery, sewage and water treatment operations in China. The group is increasing its exposure to the domestic natural gas business and, through the deal, will bolster its market position within the industry. Its investment comes as the Chinese government implements a series of policy measures to support a five-year plan. This programme involves ramping up the natural gas contribution to primary energy consumption from 4.6 per cent in 2011 to 7.5 per cent by 2015. It also includes increasing natural gas sales from 130.50 billion cubic metres in 2011 to 230.00 billion cubic metres by 2015. http://zephyr2.bvdep.com/version-2013726/FullEditorialNews.serv?databaseContext=Deals&NewsId=15001&product=zephyrneo

BEG buying again.. According to the disclosure of interests from the HKEx, on 18 July, BEIJING ENT (00392.HK) purchased 3.18 million shares of CHINA GAS HOLD (00384.HK) on exchange at the average price of HK$9.004, which involved a total of HK$28.633 million; after the transaction, BEIJING ENT (00392.HK)'s shareholding in CHINA GAS HOLD was increased from 21.94% to 22.01%. http://www.aastocks.com/EN/News/HK6/65/NOW.554672.html

http://www.energy-pedia.com/news/china/new-155414 And the new partners are a good fit in my view.... http://e.cippe.com.cn/OfflineExDB/BJ2012/en-view-id-731.html

Gas prices are been adjusted upwards for non residential customers country wide.. http://www.aastocks.com/EN/ltp/LTP_RT_Quote/HK6/NOW.551164.html

Morning! Under the deal..... 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 it is pretty clear that no prior price has been agreed as it is not an option package..... I don't think the delay by a month or so will affect this date...

Going forward, hard to figure, as we do not know how many shares FTO may get in the second payment(which FTO have indicated they will opt for shares over cash) The gas sale consideration states only total amount of shares but at no price, that can be paid out to FTO. So in my opinion, if CGH share price were to rocket in the next 6 months, FTO may well opt for cash instead of shares and use the money else were.....

No! Regardless of the gas sale deal.....CGG (of which FTO is 50% holder) will still be entitled to the divi due as shareholders in CGH Our 50% stake will be worth about £1.8 million to FTO in total divi this year....