ENN Energy Will not Raise Bid for China Gas

Chinese gas distributor ENN Energy Holdings Ltd has no plans to raise its $2.2 billion joint takeover bid with state energy giant Sinopec Corp for China Gas Holdings Ltd, ENN's chairman was quoted on Wednesday as saying.
"The consortium would not raise the offer price of HK$3.50 a share," the South China Morning Post reported, citing ENN Chairman Wang Yusuo as saying on the sidelines of a conference in Beijing.

He was also quoted as saying that the talks between the consortium and China Gas' representatives had reached an impasse. "We are stuck in the discussions," he said.

Last December, China Gas rejected an unsolicited cash bid from Sinopec and ENN Energy, saying it failed to reflect the fundamental value of the company.

The Sinopec/ENN consortium is in the process of securing regulatory and shareholder approvals before making a formal offer.

Shares in China Gas closed at HK$3.75 apiece on Tuesday.

The battle for China Gas has intensified in the past two months. Several key shareholders in the firm, including South Korea's SK Holdings, have tightened their grip on the takeover target.

The South China Morning Post also cited Wang as saying that a takeover of China Gas could boost the takeover target's profit by at least 30 percent.