(IBTimes) - China Gas Holdings (HKG:0384) was turned up a
notch as Beijing Enterprises Group boosted its stake in the fuel
supplier for the second time in five days to become its No2
LTN www.livetradingnews.com Asia's leading economic research
house thinks BEG's move will put further pressure on China
Petroleum & Chemical Corp (HKG:0386), or Sinopec, and ENN
Energy (HKG:2688) to boost their hostile joint takeover bid worth
HK$16.7 billion. HCM one of the best performing fund managers in
Asia see the price rising further over the next few days.
BEG, the state-owned parent of Hong Kong-listed Beijing
Enterprises Holding (HKG:0392), snapped up 161.8 million shares
sold by ADB yesterday at HK$4.10 each to raise its stake to 12.65
percent, according to the Securities and Futures Commission.
The biggest China Gas shareholder is Fortune Oil Plc with
"I have no idea who sold their stake to BEG. But the deal
reflects the fact that more investors recognize our value," China
Gas president Eric Leung Wing- cheong told The Standard.
On Thursday, BEG had bought 237.6 million China Gas shares
from Oman Oil, also at HK$4.10 apiece.
The Sinopec and ENN bid works out to HK$3.50 per share, and
the pair have played down the possibility of any hike.
China Gas has consistently opposed the offer as
"opportunistic" and as failing to reflect the company's true
Sinopec and ENN have extended their acquisition deadline three
times as they await anti-trust sanctions from the mainland
"Sinopec and ENN would have to raise their offer to at least
HK$4.10 per share in order to win the deal," said an analyst who
declined to be named. "The price of HK$4.10 basically reflects
the company's value."
The participation of BEG further increases the chances of a
bidding war, UBS said. The Swiss brokerage also raised China Gas
to "buy" from the previous "neutral," boosting its target price
to HK$4.50 from HK$4.
Before the BEG move, the battle for China Gas had already
intensified with another key shareholder - South Korea's SK
Holdings - raising its stake through secondary market
Shares gained 4.1 percent to HK$4.06 yesterday - a 17-month
high - while the benchmark Hang Seng Index fell 2.6 percent to
Shayne Heffernan oversees the management of funds for
institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with
him over 25 years of trading experience in Asia and hands on
experience in Venture Capital, he has been involved in several
start ups that have seen market capitalization over $500m and 1
that reached a peak market cap of $15b. He has managed and
overseen start ups in Mining, Shipping, Technology and Financial
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