SK E&S Co., clean energy & solution unit of South Korea’s third largest conglomerate SK Group, hopes to fetch up to 760 billion won ($634.4 million) from selling 3.3 percent out of its 15 percent interest in Hong Kong-listed China Gas Holdings Ltd. currently trading at annual highs.
Its underwriter Goldman Sacs on Thursday tapped demand in the offer of 158.5 million shares or 3.3 percent stake in China Gas Holdings via an off-hour block deal, according to investment bank industry sources. The Korean company owns 15 percent stake in the gas service company as of the end of June this year.
China Gas Holdings is a natural gas service provider that is engaged in investment, construction, and management of city gas pipeline infrastructure. The company is listed on the Hong Kong Stock Exchange. Thanks to Chinese government’s campaign that favors cleaner natural gas over coal, China Gas Holdings’ business has been expanding rapidly. The stock is near a 52-week high.
SK E&S is expected to sell its 3 percent stake in China Gas Holdings from 4,500 won to 4,800 won apiece, 3.1 percent to 8.2 percent discounted from the stock’s closing price of 32.30 Hong Kong dollars (5,400 won or $4.51) on Thursday. The sale is expected to reach from 720 billion won to 760 billion won.
SK E&S’s cash-out follows SK Gas Co. which secured 176.3 million won after selling its entire 49.23 million shares in China Gas Holdings via a block deal in January this year.
By Chung Seok-hwan and Cho Jeehyun
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