Sino Gas & Energy Holdings Limited shareholders approve Lone Star takeover

Sino Gas & Energy Holdings Limited (ASX:SEH) shareholders have voted in favour of US private equity firm Lone Star Fund’s $530-million takeover bid.

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Sino Gas & Energy Holdings Limited (ASX: SEH) shareholders have approved private equity firm Lone Star Funds’ takeover bid for the ASX-listed energy company which focuses on Chinese assets.

Under the deal, Lone Star will acquire 100% of Sino Gas’s issued share capital at 25 cents per share after 88% of shareholders voted in favour of the scheme on Wednesday.

The Sino Gas share price has been charging over the past year, gaining more than 200% as the company’s share price enjoyed surges prompted by Lone Star’s previously unsuccessful bids to acquire Sino Gas.

But Sino Gas directors were satisfied with Lone Star’s revised offer of 25 cents per share and urged shareholders to approve the deal.

Sino Gas & Energy Holdings Limited develops natural gas assets in China where it holds a 49% interest in Sino Gas & Energy Limited, which holds production contracts for the Ordos Basin – China’s largest gas producing basin.

Lone Star’s takeover remains subject to court approval.

Shareholders of other gas producers and explorers have also had a good run over the past year.

The Beach Energy Ltd (ASX: BPT) share price has gained more than 175% over the past year despite taking a hit last month when the company released its yearly results.

Investors expressed their disappointed after Beach Energy missed its underlying profit guidance and sent the company’s share price downwards.

The Beach Energy share price has since recovered.

Santos Ltd (ASX: STO) shareholders have also enjoyed solid gains over the past year as the oil and gas company’s share price climbed by about 77%.

Santos reinstated dividends last month as the company posted an increase in profits.

But shareholders of Australia’s largest liquefied natural gas producer, Woodside Petroleum Limited (ASX: WPL), have not seen returns as strong as those three smaller players. Woodside’s share price has gained about 28% over the past year.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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