A?share giant ENN Natural Gas has proposed to acquire its Hong Kong?listed subsidiary, ENN Energy, for HKD90.5?billion (USD11.6 billion) and after completion, the clean energy distributor will be delisted from the HKEX.
Under a scheme of arrangement, ENN Natural Gas will issue H shares to the shareholders of ENN Energy and pay a cash consideration of up to HKD18.36?billion. At the same time, ENN Natural Gas will file an application to the HKEX for the listing of H shares.
Sullivan & Cromwell’s Hong Kong office managing partner Ng Kay Ian and Beijing office managing partner Gwen Wong are advising the offeror on the privatisation proposal, the listing application, the financing structure and compliance with US securities law.
Clifford Chance is acting as ENN Energy’s legal counsel, with Hong Kong?based Tommy Tam as the lead partner.
A HKEX document states that ENN Natural Gas currently indirectly holds 34.28% of ENN Energy. Following the acquisition, ENN Natural Gas will be able to expand its resource pool and manage capital in a unified approach.
