ENN Group said on Wednesday that it will acquire Hony Capital’s 11.7 percent share in the Australian LNG player Santos, for US$750 million.
Under the terms of the acquisition, done through ENN Group’s unit ENN Ecological Holdings, Hony Capital will become a strategic investor of ENN ’s A-share listed company through a private placement of new shares, equivalent to $380 million, supporting ENN’s natural gas growth plans, ENN said in a statement.
Through the purchase of shares in Santos, ENN said it enters the upstream part of the value chain.
In the period from 2001 to 2015, ENN’s natural gas sales volumes rose 47 percent and it distributed 1.88 million tons of LNG every year, which is about 20 percent of the LNG trade volume in China, the statement reads.
ENN is currently building its LNG terminal in Zhoushan, Zhejiang Province. The terminal will have an initial capacity of 3 mtpa when it starts operations in 2018.
Santos noted in its statement on Thursday, it has provided consent to the transfer to the ENN Group following a request from Hony Capital.
LNG World News Staff