SK E&S to sell stake in Chinese firm for 787 bln won

SEOUL, Sept. 6 (Yonhap) -- SK E&S Co., a leading South Korean gas provider, said Friday it has decided to sell a 3.3 percent stake in China Gas Holdings Ltd. for 786.8 billion won (US$656 million) to improve its financial status.

The affiliate of SK Group said it will sell 170 million shares of the Chinese firm in a block deal following a board meeting. After the sale, SK E&S's stake in China Gas Holdings will come to 11.7 percent.

SK E&S has been buying China Gas Holdings shares since 2007 as the two sides sought to cooperate in the gas industry in Asia.

In recent years, SK E&S has been trying to secure cash to enhance its financial soundness. Last year, the company sold its 49 percent stake in its affiliate Paju Energy Service Co. to Thai utility firm EGCO for $780 million.

SK E&S said it plans to use the proceeds from the sale to finance construction of a natural gas power plant in South Korea.

kdon@yna.co.kr
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