Beijing Enterprises to buy 22 percent of China Gas for $1.1 billion

HONG KONG Mon Jul 29, 2013 8:06pm EDT

HONG KONG (Reuters) - Beijing Enterprises Holdings Ltd (0392.HK) said on Tuesday it would buy from its parent company 22.01 percent of city gas pipelines operator China Gas Holdings Limited (0384.HK) for HK$8.22 billion ($1.06 billion) to strengthen its position in the Chinese natural gas sector.

Beijing Enterprises Holdings, which also has brewery, sewage and water treatment operations in the mainland, will buy China Gas shares from parent Beijing Enterprises Group Company Limited at HK$7.80 each, it said in a filing with the Hong Kong bourse.

The deal will be settled with HK$2 billion in cash and by the issue of 113.13 million new Beijing Enterprises Holdings shares at HK$55 each to the parent, increasing the parent's stake in Beijing Enterprises Holdings to 61.59 percent from 57.86 percent.

(Reporting by Donny Kwok)

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