China Gas plans $1.5 bln share sale for gas projects, business development

Beijing Enterprises Holdings

22/04/2021 02:12

HONG KONG, April 22 (Reuters) - China Gas Holdings Ltd
 0384.HK  plans the sale of HK$11.66 billion ($1.50 billion)
worth of new shares to major shareholders, to raise capital for
gas projects and expansion.
    It plans to acquire city gas projects in China, and expand
and develop liquefied petroleum gas and distribution heating
businesses.
    The gas services provider has agreed to sell 392 million new
shares, or 6.99% of the enlarged share capital, to shareholders
Beijing Enterprises Holdings Ltd  0392.HK  and China Gas Group
Ltd, it said in a filing to the Hong Kong bourse on Thursday.
    The new shares will be issued at HK$29.75 apiece,
representing a 9% discount to Wednesday's close of HK$32.70.
    The shareholders will buy the new shares on completion of
sales of the same amount of existing shares at the same price to
third party investors. 
    Beijing Enterprises' stake in China Gas will be diluted to
22.11% following the deal, from 23.77%, while China Gas Group's
stake will be reduced to 13.69% from 14.71%.
    UBS AG and Goldman Sachs (Asia) are the placing agents.
   ($1 = 7.7629 Hong Kong dollars)

 (Reporting by Donny Kwok; Editing by Jacqueline Wong)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))