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China&#8217;s private equity firm <a style="color: #000080;" href="http://dealstreetasia.com/tag/hony-capital" target="_blank" rel="noopener noreferrer">Hony Capital</a>, along with Chinese gas distributor <a style="color: #000080;" href="http://dealstreetasia.com/tag/enn" target="_blank" rel="noopener noreferrer">ENN</a>, has increased its stake in Adelaide-based Australian oil and gas producer <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/santos-ltd/" target="_blank" rel="noopener noreferrer">Santos Ltd</a>.</article>

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China&#8217;s private equity firm <a style="color: #000080;" href="http://dealstreetasia.com/tag/hony-capital" target="_blank" rel="noopener noreferrer">Hony Capital</a>, along with Chinese gas distributor <a style="color: #000080;" href="http://dealstreetasia.com/tag/enn" target="_blank" rel="noopener noreferrer">ENN</a>, has increased its stake in Adelaide-based Australian oil and gas producer <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/santos-ltd/" target="_blank" rel="noopener noreferrer">Santos Ltd</a>.
Hony purchased an additional 48 million shares, which represents a 2.3 per cent stake in Santos, following market close on Wednesday, May 3. The consideration price of A$3.84 was at a 6 per cent premium to the closing price.
This puts the collective stake held by Hony, ENN and affiliates to 15.1 per cent.
Hony Capital is among China’s most successful private equity funds and includes backers such as state-sponsored Legend Holdings, Singapore’s Temasek Holdings and the Abu Dhabi Investment Authority,
Santos has come under increased pressure after the Australian government introduced new measures that would force exporters to supply extra gas to the domestic market from July 1. At the recent annual general meeting of the oil and gas producer, concerned shareholders asked the firm how it plans to deal with these tough measures.
Major Chinese shareholders have expressed concerns on the direction of Santos, with ENN and Hony saying they have formally agreed to operate together on voting and other corporate affairs where Santos is concerned, an action that is seen as suspect by market observers.
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The value of Santos&#8217; stocks have declined since the slump in oil prices started in 2014, with scrip price dropping below A$13. The firm has since struggled to recover and reduce its debt pile that was built up through significant investments in new energy projects.
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Also Read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/chinas-hony-capital-will-continue-to-invest-in-u-s-regardless-of-trumps-china-stance-ceo-65758/">China’s Hony Capital says it will continue to invest in US</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/china-hony-capital-backed-hospital-corporation-of-china-to-raise-64m-hk-ipo-66427/">Hony Capital-backed Hospital Corporation of China to raise $64m in HK IPO</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/58102-58102/">China’s Hony Capital buys 2.5% more in Santos for $121.2m</a>
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Hony, Chinese gas producer ENN and affiliates now collectively hold a 15.1 per cent stake in Santos. 

China: Hony Capital increases its stake in Australia's Santos

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China: Hony Capital increases its stake in Australia's Santos

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