Competition Stirs Up for China Gas Deal
A $2.15 billion bid for China Gas Holdings Ltd (HKG: 0384) by Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) and ENN Energy Holdings Ltd (HKG: 2688) was dealt a further blow when a major China Gas shareholder raised its stake to a higher price, the Wall Street Journal reported. Beijing Enterprises Holdings Ltd (HKG: 0392) bought more than 132 million China Gas shares at 47 US cents to 52 US cents, lifting its stake to about 18% from just under 15%. Sinopec and ENN Energy are offering 45 US cents a share, a price that China Gas has said fails to reflect the company's fundamental value. China Gas controls pipelines that serve more than six million customers in China and has exclusive rights to operate pipelines in 151 cities across the country.
China Railway Wins ¥6.6b Bridge Contract
China Railway Group Co (SHA: 601390, HKG: 0039) said it has signed a contract for a project included in the construction of a bridge connecting Zhuhai, a city in Guangdong province, Hong Kong and Macau. The deal, worth ¥6.58 billion, is equivalent to 1.43% of the company's revenue in 2011. The bridge is estimated to cost a total of ¥72.9 billion and become operational by 2016.
Soho Unveils Share Repo Plan
Soho China Ltd (HKG: 0410), a Beijing-based property developer, said it plans to buy back $200 million worth of shares as it believes its share price has significantly undervalued its assets and balance sheet. Soho said the repurchase would not strain its cash supply.
Changyu Breaks Ground on ¥6b Wine Castle
Yantai Changyu Pioneer Wine Co Ltd (SHE: 000869), China's largest wine producer, said construction has begun on its ¥6 billion International Wine Castle and is expected to finish by 2016. The project includes R&D facilities, breweries, vineyards and a trade center. Changyu plans to open 300 outlets in China this year and operate 3,000 outlets six years from now. It currently employs 3,700 people and has 5,300 dealers and 29 dispatch centers across the country.
$1 = ¥6.32