The deal is subject to both Santos and the ENN Group’s shareholder approval.
As part of the transaction Hony Capital will become a strategic investor in the ENN Group through a private placement.
The ENN Group is a large private distributor of gas into the growing Chinese market and a known industry player in Australia.
Santos has welcomed the ENN Group onto the register as a shareholder with obvious knowledge of the gas business across the region.
Following a request from Hony Capital, Santos has provided consent to the transfer to the ENN Group under the terms of the subscription agreement entered into at the time of Santos’ capital raising in 2015. If the transaction completes, those shares will continue to be escrowed until 9 November 2016 subject to certain exceptions.