Buyout group joins Yingde bid battle

Listen to this article

00:00
00:00

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. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.