Summary by Moomoo AI
CHINA GAS (A WHOLLY OWNED SUBSIDIARY OF COMBUSTION ENERGY) ANNOUNCED ON 27 FEBRUARY 2024 THAT IT HAD REACHED AN AGREEMENT WITH FUCHUNG LEGEND AND FUCHUNG GLORY TO TERMINATE EARLY THE TWO VESSEL LEASES NAMED “MEDIUM-BURNING LEGEND” AND “COMBUSTION GLORY”. The move will result in a reduction of approximately HK$9.67 billion in rights assets and is expected to generate revenues of approximately HK$76 million. The termination agreement is considered to be a sale of assets and constitutes a connected transaction, as Mr. Liu is an Executive Director and Affiliate of the Company and Fu Chung Legend and Fu Chung Honor are its associates. Under the listing rules, the transaction is above 0.1% but less than 5% applicable percentage, so independent shareholder approval is not required. The termination of the lease helps the Group to remain flexible and optimize economic benefits in the changes in the LNG transportation industry.