Comprehensive M&A data with integrated detailed company information

ENN EC restructures, acquires ENN Energy stake
Posted on Wednesday, 11 September 2019 10:53
ENN Group International is carrying out an intra-group restructuring by transferring all of its 32.8 per cent stake in Cayman Islands-incorporated, Hong Kong-listed gas distributor ENN Energy to ENN Ecological Holdings (ENN EC).

The consideration has not yet been determined, though it will likely be settled via a swap of assets, through newly-issued shares and cash.

ENN EC’s business is currently focused on natural gas upstream activities, such as production, while ENN Energy is mainly engaged in investing in pipeline infrastructure and downstream operations like managing petrol stations.

Through the reorganisation and asset injection, the Shanghai-quoted company will be able to expand further across the whole industry chain so that upstream resources can better connect downstream customers.

As an integrated energy service provider, it will be able to consolidate its position in the natural gas industry, improve overall efficiency while cutting costs and continue to build scale.

The restructuring is merely the latest strategical step as ENN EC has already been reorganising its business model to comprise liquefied natural gas, energy engineering, methanol and coal.

China’s natural gas consumption rose 18.1 per cent year-on-year to 280.30 billion cubic metres in 2018, according to ENN Energy’s annual report for the 12 months ended 31st December 2018.

The Hong Kong-listed company booked revenue of CNY 35.34 billion (USD 4.97 billion) in H1 2019 (H1 2018: CNY 26.53 billion) and had net profit attributable to shareholders of CNY 3.36 billion (H1 2018: CNY 1.78 billion).

It sold a total of 13.20 billion cubic metres of natural gas in first six months of 2019, representing a 19.4 per cent increase on H1 2018.

ENN Energy had net debt of CNY 11.44 billion, as at 30th June 2019 (31st December 2018: CNY 12.33 billion) and had gearing of 40.8 per cent (31st December 2018: 48.2 per cent).

ENN Group International is beneficially owned as to 50.0 per cent by Wang Yusuo, who is chairman of ENN Energy and ENN EC, and 50.0 per cent by his wife, Zhao Baoju.

© Zephus Ltd