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ENN Energy Gets $11.6 Billion Buyout Offer From Major Holder

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(Bloomberg) -- The top shareholder of ENN Energy Holdings Ltd. has made a take-private offer that values the Chinese gas distributor about HK$90.5 billion ($11.6 billion), pushing the company’s Hong Kong-listed shares up as much as 17%.

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Shanghai-listed ENN Natural Gas Co. is offering HK$24.50 in cash and about 2.94 H shares of ENN Natural Gas for each ENN Energy share that it doesn’t already own, according to a stock exchange filing Wednesday. The bid values ENN Energy at about HK$80 per share, representing a nearly 35% premium to its last closing price on March 18.

Shares of ENN Energy, suspended last week, resumed trading on Thursday and rose as much as 17% to touch HK$69.75 per share.

The deal is part of ENN Natural Gas’ reorganization ahead of its own proposed listing in Hong Kong. ENN Natural Gas currently owns around 34% of ENN Energy through its unit, Xinneng (Hong Kong) Energy Investment.

ENN Natural Gas, one of China’s key importers of liquefied natural gas, said it will not increase its offer. It plans to delist ENN Energy following the transaction.

ENN Energy raised about HK$238 million in a Hong Kong initial public offering in 2001. The company was added to the city’s benchmark Hang Seng Index in late 2021 alongside China Resources Beer Holdings Co., JD.com Inc. and NetEase Inc. The firm’s net income was 5.99 billion yuan ($825 million) for 2024, a 12% decline from the previous year, on lower gas prices amid signs of weakening Chinese demand.

--With assistance from Stephen Stapczynski.

(Updates to add share price in the third paragraph. Earlier versions were corrected to remove inaccurate bid value and relationship of the firms, including in the URL.)

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