HK Stock Market Move | CHINA OIL & GAS (00603) rose over 21% in the morning session. It plans to sell equity interests in 4 subsidiaries to Shandong Shengli (000407.SZ).

CHINA OIL & GAS (00603) rose more than 21% in early trading, as of the time of writing, it has risen by 18.44%, to 0.167 Hong Kong dollars, with a turnover of 2.9268 million Hong Kong dollars. On the news front, CHINA OIL & GAS announced that it has entered into an intention agreement to issue shares and pay cash to purchase assets with Zhongyou Investment, Tiandali Tong, Zhongyou Zhongtai, and Shandong Shengli (000407.SZ). According to this agreement, Shandong Shengli plans to purchase stakes in several subsidiaries held by the group through the issuance of shares and cash payment. The proposed transaction includes Shandong Shengli acquiring all the shares of Zhongyou Zhuhai and Tianda Shengtong, 51% of the shares of Nantong Zhongyou, and 40% of the shares of Ganhe Zhongyou. Upon completion of the proposed transaction, it is expected that Shandong Shengli will hold or control 100% of the shares of Zhongyou Zhuhai, 100% of the shares of Tianda Shengtong, 80% of the shares of Ganhe Zhongyou, and 100% of the shares of Nantong Zhongyou. CHINA OIL & GAS stated that due to the fact that the contracting parties have not yet signed formal binding documents and negotiations are still ongoing, the proposed transaction outlined in the intention agreement may not necessarily be implemented.