Sinopec’s Fu Says Bid to "Greatly" Benefit China Gas

China Petroleum & Chemical Corp (Sinopec) Chairman Fu Chengyu said on Thursday that the energy giant's $2.2 billion joint bid with ENN Energy Holdings Ltd for city piped gas distributor China Gas Holdings Ltd will "greatly" benefit the target company and its shareholders.

"I believe the bid by ENN Energy and Sinopec will benefit its current shareholders greatly," Fu told reporters on the sidelines of a Sinopec shareholder meeting, referring to China Gas.

"(ENN) is a professional city gas distributor and Sinopec is a company with energy security. Cooperation by these two companies will add value to its shareholders," he added.

China Gas on Wednesday night rejected the unsolicited cash bid from Sinopec and ENN Energy.

In a stock exchange filing, China Gas described the joint bid as wholly unsolicited, opportunistic and that it "fails to reflect the fundamental value of the company".

Fu said he hoped China Gas' board of directors would consider the bid "carefully".

(reuters.com, Edited by Topco)