China Gas to acquire assets of Fortune Oil

Pipeline operator China Gas Holdings (0384.HKG) has inked a deal to acquire UK-based oil and gas supplier Fortune Oil’s (FTO.LON) Chinese gas assets for US$400 million, The Wall Street Journal reported. China Gas will finance the deal with cash and share options, which are listed in Hong Kong. If Fortune exercises the contracted options, the total shareholdings of the company and China Gas founder Liu Minghui will rise to 22% of the shares in China Gas, from the 18.4% held now. The assets acquired by China Gas include a coal-bed methane block in Shanxi Province, natural-gas infrastructure in seven Chinese provinces and gas pipeline facilities. The deal advances a relationship between China Gas and Fortune, which helped China Gas fight off a takeover bid earlier this year from state-owned oil company China Petroleum & Chemical (SNF.NYSE, 0386.HKG, 600028.SH).