China’s ENN Natural Gas to sell coal miner for $915 million to focus on main business

(Reuters) – ENN Natural Gas said on Tuesday it will sell its entire stake in its coal mining unit Xinneng Mining Industry for 6.67 billion yuan ($915 million) in a move to enhance the Chinese company’s focus on natural gas and optimize its asset structure.

The buyer Guangdong Kaihong Technology will also clear 3.83 billion yuan worth of debts that Xinneng owes ENN Natural Gas and its subsidiaries, ENN Natural Gas said in a filing to the Shanghai stock exchange.

Xinneng holds the mining rights for a coal mine in the northern Chinese region of Inner Mongolia, with a capacity of 8 million tonnes per year, according to the filing and ENN Natural Gas’s six-month report for 2023.

($1 = 7.2902 Chinese yuan renminbi)

(Reporting by Roxanne Liu and Kane Wu; Editing by David Holmes)