Sinopec, ENN Extend $2.2 Billion Offer for China Gas Again

China Petroleum & Chemical Corp (Sinopec) (0386.HK) and ENN Energy Holdings Ltd (2688.HK) have extended their $2.2 billion offer for China Gas Holdings Ltd (0384.HK) for the fifth time as they seek regulatory approvals to move ahead with Hong Kong's first unsolicited takeover bid.

Sinopec and ENN will extend the offer until October 15, the companies said in a filing with the Hong Kong stock exchange.

In December last year, Sinopec (600028.SS) (SNP.N) and ENN made a conditional cash offer of HK$3.50 for China Gas. The piped-gas distributor rejected the offer, saying it failed to reflect the true value of the Hong Kong-listed company.

Shares in China Gas have since traded consistently above the offer price as some key shareholders including Beijing Enterprises Group Co Ltd jostled to raise their stakes in the company, which operates in more than 150 Chinese cities.

The pre-conditions set in the Sinopec-ENN proposal include winning the necessary approvals from Chinese regulatory authorities, and China Gas allowing Sinopec and ENN to conduct due diligence.