July 25 -- China Resources Gas Group (1193.HK) will acquire Wanggao, a distributor of natual gas, from its parent, China Resources Holding, for 1.71 billion yuan, reports sina.com, citing a company filing.

The company will issue 161 million shares at 10.6096 yuan per share to its parent.

The issue price represents a discount of eight percent over the closing price of 11.54 yuan last Friday.

Upon the completion of the transaction, the parent’s shareholding in China Resources Gas Group will be increased from 68.28 percent to 70.84 percent.

The target company mainly distributes natural gas, and operates natural gas stations in the cities of Yueyang, Zhongshan, Jingde Town, Anyang, and Dandong.