Sinopec and ENN launch hostile bid for China Gas

Natural gas distributor ENN Energy and state-owned China Petroleum Chemical Corp Sinopec have launched a rare Hong Kong hostile takeover in a bid to win control of China Gas, another distributor.

It is the first time a Chinese state-owned enterprise has backed an unsolicited offer in the city, putting China Gas in a difficult spot as it continues to struggle in the wake of its chairman’s arrest last December on suspicion of embezzlement. He remains under house arrest in Shezhen.

According to a statement made to the stock exchange in Hong Kong yesterday, the two bidders are offering to pay HK$3.50 a share in cash for...