Demand propels gas firm to buy |
http://www.sina.com.cn 2004/12/27 12:24 Shanghai Daily |
PANVA Gas Holdings Ltd, a gas distributor in which Hong Kong billionaire Li Ka-shing has a stake, will pay 70.5 million yuan (US$8.5 million) for 51 percent of a piped-gas provider in eastern China, taking advantage of the nation's growing demand for the fuel. Anshan City Gas, previously a state-owned enterprise to be renamed as Anshan Panva Gas, posted a net loss of 23.4 million yuan last year, up from 11.8 million yuan a year ago, Panva Gas said in a statement to the Hong Kong stock exchange yesterday. "The acquisition is in line with the business strategy. The board expects it would be able to turn around Anshan Panva Gas," Panva Gas said. "But we don't expect the asset transfer will have any immediate material impact on the earnings." Panva Gas is competing with Xinao Gas Holdings Ltd and Hong Kong & China Gas Co for stakes in gas providers in China, where demand for the fuel from factories and homes is increasing as the government encourages gas usage to reduce pollution. The purchase, its third gas venture in northeastern China, will be funded by internal resources. (Bloomberg News) |