HONG KONG, May 5 (Reuters) - Shares of Yingde Gases were suspended on Friday after the company said it might withdraw its Hong Kong listing in September after China’s largest industrial gases company finalises a privatisation plan.
In March, Hong Kong-based private equity firm PAG agreed to buy the 42.1 percent stake of three co-founders of Yingde Gases for $616 million.
PAG became its controlling shareholder when it later made a compulsory offer for all outstanding shares it did not already own, giving it a 98.11 percent stake in Yingde, as of May 4. PAG paid just over $1 billion for the over 70 percent stake it did not already own.
On completion of the offer, just 1.89 percent of the company’s issued shared capital was held by the public, leaving Yingde Gases unable to fulfil its minimum public float requirement under stock exchange rules.
In a statement to the Hong Kong stock exchange on Thursday, Yingde said trading would be suspended until the company’s delisting.
Yingde’s main products include oxygen, nitrogen, argon and some specialty gases, which it sells primarily to companies in the steel, iron ore, chemicals and electronics industries.
Reporting By Donny Kwok and Twinnie Siu; Editing by Sherry Jacob-Phillips