15 Apr 2013 13:47
15 April 2013
FORTUNE OIL PLC
("Fortune Oil" or the "Company")
Acquisition of China Gas shares from Fortune Max
by China Gas Group Limited
Fortune Oil (LSE: FTO.L) focuses on oil, natural gas and resource supply operations and investments, primarily in China.
Fortune Oil announces the following development regarding its shareholding in China Gas Holdings Ltd ("CGH") which is held through China Gas Group Limited ("CGG"), a joint venture company between the Company and Mr Liu Minghui.
As detailed in the Company's announcement on 17 February 2012, CGG entered into an arrangement with a private company ("Fortune Max") controlled and beneficially owned by Mr Daniel Chiu, a director and substantial shareholder in the Company, in order to help finance the purchase of CGH shares. Pursuant to this arrangement, Fortune Max subsequently purchased CGH shares and agreed to sell any such shares purchased to CGG at cost, as and when called upon by CGG.
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. Under the terms of the arrangement with CGG, Fortune Max has generated neither profit nor incurred any loss from its transaction in CGH shares. The average purchase price of the CGH shares was HK$3.831, before finance costs and other transaction costs which were absorbed by CGG directly.
Following this transaction, CGG owns 702,446,000 CGH shares, representing 15.37% of CGH's total issued shares.
For further details:
Fortune Oil PLC
Tee Kiam Poon - Chief Executive Tel: 00 852 2583 3125
Bill Mok - Chief Financial Officer Tel: 00 852 2583 3120
Pelham Bell Pottinger
Archie Berens Tel: 020 7861 3112 / 07802 442486