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China's ENN Natural Gas $12 Billion Buyout Offer for ENN Energy Expires

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ENN Natural Gas's nearly $12 billion buyout offer for Hong Kong-listed ENN Energy Holdings lapsed on Friday following a failure to secure regulatory approvals, the Chinese energy company said.

Shanghai-listed ENN Natural Gas is the biggest shareholder of ENN Energy, owning about 34% of the shares through Xinneng (Hong Kong) Energy Investment.

In March, it reportedly made a cash and stock offer valuing ENN Energy at about HK$90.5 billion ($11.55 billion). It had previously applied to list shares in the Hong Kong Stock Exchange in view of the planned takeover.

"Notwithstanding substantial efforts having been made, and nearly one year has elapsed since ENN Natural Gas first submitted its application for the listing, certain necessary regulatory approvals and filings for the listing have not yet been obtained or completed," the company said.

"The timetable for satisfying all pre-conditions remains uncertain."

As the offer lapsed on June 12 due to a failure to meet pre-conditions for a take-private transaction, ENN Natural Gas said it would not proceed further with its application for listing in Hong Kong. At the same time, ENN Energy's listing in the exchange will not be withdrawn.

As per Hong Kong takeover rules, ENN Natural Gas will not be able to submit another offer for the energy unit within 12 months of the expiration of the previous bid, without regulatory consent.

ENN Natural Gas said it still plans to increase its shareholding in ENN Energy, with price, timing and volume subject to market conditions.

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