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PAG Capital has waded into the battle for Yingde Gases, the Chinese group currently torn apart by a boardroom dispute between the current chairman and two founders of the group.

In spite of their disputes, the three agreed on Wednesday to sell all of their holdings – some 42 per cent in total – to PAG at HK$6 a share. The deal pits PAG against US group Air Products, which has a non-binding HK$5.5 a share offer on the table.

The trio’s deal with PAG lapses if another offer is made at least 5 per cent above their HK$6 asking price.

Shares surged as much as 20.1 per cent on Wednesday following the news, before trimming gains to be 16.5 per cent higher at HK$6.21 in afternoon trade.

Oasis, a Hong Kong-based hedge fund that owns 4.5 per cent of Yingde, had been seeking a board seat as it pushed for the creation of a fully independent board and a “robust” review of the company’s strategic options.

Copyright The Financial Times Limited 2017. All rights reserved.

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