Oz Sino Gets Shareholder Approval for Lone Start Takeover

Australia-listed but China-focused gas explorer Sino Gas & Energy Holdings said September 5 its shareholders have approved private equity firm Lone Star Funds’ A$530mn ($402mn) takeover bid for the company.

Lone Star will acquire 100% of Sino’s shares after 88% of shareholders voted in favour of the proposal. Sino announced it had received the bid May 31 and the acquisition would see its shareholders receive A$0.25/share. The takeover bid was granted approval by Australia’s Foreign Investment Review Board in July.

The takeover now remains subject to court approval. “The company will make a further announcement after the court has considered the matter. If the court approves the scheme, Sino Gas intends to lodge the orders of the court with the Australian Securities and Investments Commission (ASIC) on Wednesday, 12 September 2018,” Sino said. Once the takeover is approved by the court, Sino’s shares will be suspended from trading on the Australian Securities Exchange with effect from the close of trading September 12.

Sino is the operator of the Chinese Linxing and Sanjiaobei production sharing contracts (PSC) in the Ordos Basin, China’s largest gas producing basin. The company’s current interest in the Linxing PSC with CUCBM is 70% and 49% of the Sanjiaobei PSC held with PetrolChina subsidiary PCCBM.