Beijing Enterprises challenges China Gas takeover

State-owned Beijing Enterprises Group sharply increased its stake in China Gas Holdings (0384.HKG) to challenge the hostile takeover attempt by ENN Energy Holdings (2688.HKG) and China Petroleum and Chemical Corp (Sinopec; SNP.NYSE, 600028.SH, 0386.HKG), Bloomberg reported. Beijing Enterprises Group bought roughly 400 million additional shares at a 17% premium to the HK$3.50 per share offer price put forth by ENN and Sinopec in their takeover bid, giving Beijing Enterprises a total stake of 12.65% in China Gas. As China Gas’s largest shareholder, Beijing Enterprises Group may delay a takeover by refusing to sell its newly acquired shares with a significant premium. China Gas has so far rejected the takeover offers saying they don’t reflect its fair value, while Sinopec Chairman Fu Chengyu said in March that the company will not pay more than market value.