Private equity firm Lone Star on May 30 bid A$530 million in a takeover offer to acquire two large gas projects in China from Sino Gas & Energy Holdings Ltd., Reuters reported.
Sino Gas agreed to the offer, saying risks in China justified putting the bid to a vote, Reuters reported May 30. Sino Gas said shareholders will receive 25 Australian cents per share, representing a 19% premium to its close on the ASX on May 29.
Sino Gas recently received its first approval to develop the projects and expects its shareholders to vote on the offer by the end of August or in September. The deal requires approval from 75% of shareholders to move forward, according to Reuters.
Sino Gas Managing Director Glenn Corrie told analysts that the offer will provide shareholders with "cash certain value now versus the future risks and uncertainties associated with the business."
