Zhengzhou China Resources Gas Co. (3928) plans to delist from the Hong Kong stock exchange on Feb. 14 after China Resources Gas Group Ltd. (1193) increased its stake, Zhengzhou said in a statement to the Hong Kong stock exchange.
China Resources Gas now owns 60.39 percent of the company in Hong Kong and China, up from 56.87 percent previously, according to the statement.
China Resources Gas is expanding the number of city-gas projects it operates in China to meet demand for the cleaner- burning fuel. Privatizing Zhengzhou would reduce potential conflicts in allocating resources and investment, China Resources Gas said Oct. 19.
Trading of both companies were suspended today. Zhengzhou closed at HK$16.08 Jan. 6, after surging 8.5 percent since Oct. 20 when the privatization plan was announced. China Resources Gas closed at HK$11, down 0.5 percent.
Sales of piped natural gas rose 34 percent to 735 million yuan in the six months ended June 30, Zhengzhou said in its first-half earnings report Sept. 9. The company had 1 million residential customers, 2,856 commercial customers and 96 industrial customers at the end of the period, according to report.
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