China’s largest city gas distributor, China Gas (0384.HKG), is in talks with its largest shareholder, Beijing Enterprises Group, to buy a US$328 million (RMB2 billion) portfolio, South China Morning Post reported, citing sources from both companies. If the talks are successful, it will help Beijing Enterprises Group break out from Beijing, its principal market. The deal is also part of the group’s asset reorganisation, which aims to bundle its non-Beijing city gas portfolio with that of China Gas while leaving Beijing Gas, part of Beijing Enterprises Holdings (0392.HKG), to focus on the capital, where it is the sole gas supplier.
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