US private equity firm in $530m bid for Sino Gas and Energy

US private equity firm Lone Star Funds has made a $530 million takeover bid for Australian-listed Sino Gas and Energy.

Sino Gas’ board has backed the 25¢-a-share cash offer, saying it represents an "attractive premium to recent trading prices".

Sino Gas was trading at 21¢ a share on Wednesday.

“While Sino Gas directors remain of the view that the business and assets have significant potential, they acknowledge that the cash consideration provides shareholders with cash certain value now versus the future risks and uncertainties associated with the business,” Sino Gas managing director Glen Corrie said in a statement.

The deal needs approval from shareholders and the Foreign Investment Review Board.

More to come