Investment News
- Home
- About Us
- Newsroom
- Investment News
South Korea's leading city gas provider SK E&C Co. said Thursday it will
purchase an additional stake in China Gas Holdings Ltd. for 120 billion won
(US$103 million).
"The board approved the move to buy up more shares
of China Gas, which has been listed on the Hong Kong Stock Exchange," SK
E&C, an affiliate of the country's third-largest conglomerate SK Group,
said.
The move to acquire a further 5 percent stake in the Chinese
energy company reflects SK E&C's ongoing effort to expand its presence in
China's city gas sector, and to strive for more positive synergy with SK Group's
other liquefied natural gas businesses, it said.
The company already
owns a 5.9 percent stake in China Gas, with SK Group's other affiliate SK Gas
holding 4.49 percent.
If the purchase goes according to plan, SK
Group's total stake holdings will rise to around 15 percent, solidifying its
position as the single largest shareholder of the Chinese energy
company.
A company source, meanwhile, stressed that the move does not
constitute a hostile takeover, pointing out that general Chinese market
conditions do not permit such actions.
"SK E&C aims to increase
stakes because it feels China Gas stock prices are undervalued on the market,"
he claimed.