The shares were acquired from the China Petroleum & Chemical Corporation as part of a share placement. The shares were acquired at a price of HK$14.80, a 5.1% discount to the closing price on the date the acquisition was made on 13 August. Due to logistical constraints on the date the acquisition was made, the acquired shares were allotted to First Level Holdings Limited, a substantial shareholder of the company and private company controlled and beneficially owned by director Daniel Chiu.
The board has acknowledged an arrangement between the company and FLH, where FLH will transfer all the allotted shares at cost (i.e. no profit or loss) to the company, at the earliest convenience.
The company will indemnify FLH against all costs associated with the acquisition, financing and transfer of any acquired shares. The transfer is expected to be executed in coming days. The acquisition represents approximately 0.26% of the issued capital of China Gas.
Upon transfer from FLH, the company's interest in China Gas will be 934,745,463 shares - approximately 18.62%.
At 3:26pm: (LON:FTO) Fortune Oil PLC share price was +0.2p at 9.6p
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