China Gas Has Enough Cash to Fund Fortune Purchase, CFO Says
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China Gas Holdings Ltd., set to buy Fortune Oil Plc’s Chinese natural gas operations for $400 million, said it has enough cash to fund the transaction and is looking for more acquisitions.
China Gas, which supplies natural gas to 172 Chinese cities, holds more than HK$5 billion ($645 million) in cash and won’t have to sell shares or debt, Chief Financial Officer Eric Leung said yesterday in an interview. Fortune Oil will receive $200 million in cash and either a $200 million deferred payment or 250 million shares of China Gas, the Hong Kong-based company said yesterday in a statement.