Shenzhen Gas (SHA:601139) plans to invest 1.49 billion yuan to acquire a 31% stake in Guolian Zhongrong (Beijing) Equity Investment Fund Partnership (Limited Partnership), according to a Wednesday filing with the Shanghai Stock Exchange.
The natural gas distributor will acquire the stake from Beijing Chengtong Gongrong Equity Investment Fund (Limited Partnership) and CCB Financial Asset Investment, also known as Jianxin Investment, a subsidiary of China Construction Bank (HKG:0939, SHA:601939).
Through the acquisition, the company will indirectly invest in Sichuan Huasheng Energy Development Group, which provides city gas and oilfield services. Zhongrong Fund holds a 51% stake in Huasheng Energy Development.
The company's shares rose nearly 3% during the afternoon trade.