The two companies, China Resources Gas (CR Gas) and China Resources Power (CR Power), said in a joint statement on Friday that the proposed merger would consolidate the “upstream energy resources, power generation portfolio, midstream and downstream energy distribution, and end customer access” of both companies to create a flagship energy company with a stronger capital structure.
The merger is planned to be implemented by way of a scheme of arrangement, under which CR Gas shareholders would receive 97 CR Power shares for every 100 of their shares, with the company effectively becoming a wholly-owned subsidiary of the latter.
