Sinopec and ENN Energy Joint Offer for China Gas Under Review

China Knowledge reported that Sinopec, Asia largest oil refiner and ENN Energy Holdings Ltd announced their joint application to acquire China Gas Holdings Ltd is still under review.

In the joint statement, the two sides said they have been seeking approval from various Chinese authorities, such as the National Development and Reform Commission and Chin Ministry of Commerce to move ahead with the takeover.

A person familiar with the matter said some authority has conducted anti-monopoly investigation on the acquisition.

Last December, China Gas rejected a USD 2.2 billion bid from Sinopec and ENN Energy saying it failed to reflect the firm fundamental value. ENN Energy clarified that Chairman Mr Wang Yusuo comments that the offer price will not be increased are his personal opinion.

Sinopec and ENN Energy added they have yet made any decision on whether to raise the USD 2.2 billion takeover offer or HKD 3.50 per share for China Gas. The target firm share ended down 1.6% on Wednesday which was still above the offer price of HKD 3.50.