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Hong Kong & China Gas
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Towngas China receives HK$2.8 billion investment from Asian buyout fund manager to accelerate clean energy transition

  • The board has also proposed changing the name of the company to Towngas Smart Energy to reflect the group’s ‘future development direction’
  • The investment by Affinity Equity Partners represents 13.3 per cent of the enlarged capital of Towngas China

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Towngas China said it will begin offering carbon auditing, asset management and trading capabilities to its customers. Photo: SCMP Handout
Martin Choi
Towngas China, a division of Hong Kong and China Gas (Towngas), has received HK$2.8 billion (US$360 million) in investment from Affinity Equity Partners, an Asian buyout fund manager, to accelerate its transition into a clean energy provider.

The board has also proposed changing the name of the company from Towngas China to Towngas Smart Energy to “better reflect the group’s strategic business plan and its future development direction”. The change is subject to approval at an upcoming extraordinary general meeting, according to a statement to the stock exchange on Monday afternoon.

“The investment will support Towngas China’s evolution into an integrated clean energy provider, accelerate the roll-out of distributed solar photovoltaics as part of the smart energy solution and secure long-term growth,” the company said in the statement.

Towngas China, which distributes gas to mainland cities, also announced the appointment of Peter Lee Ka-kit as its new chairman. Lee, who is the chairman of Hong Kong and China Gas Company and Henderson Land, which was founded by his father, the property tycoon Lee Shau-kee, will replace Alfred Chan Wing-kin as chairman of Towngas China.

In line with China’s goals of hitting peak carbon emissions by 2030 and carbon neutrality by 2060, the group has been promoting a “zero-carbon city” smart energy scheme based on the development of photovoltaic and energy storage projects. It has also been establishing extensive cooperation agreements with large energy companies in the country to build a smart energy ecosystem, it said.

“As a leading energy company in China, Towngas China has the ability, experience and technical expertise as well as the confidence to help tackle the climate crisis and meet China’s dual carbon goals,” said Lee, speaking at a media briefing on Monday.

The investment by Affinity represents 13.3 per cent of the enlarged capital of Towngas China. Towngas China will also issue 116,783,333 new shares at a price of HK$5 each, and convertible bonds at a principal amount worth HK$2.22 billion at a conversion price of HK$6.33 per share.

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