tg smart energy (01083.HK) announced that at the extraordinary general meeting held yesterday (20th), the merger between shandong jihua, which is indirectly held 49% by the group, and shandong ganghua, which is also indirectly held 49% by the group's parent company, china gas (00003.HK), has been approved.

After the merger of shandong jihua into shandong ganghua, it will be owned 51% by Jinan Energy Group, a state-owned enterprise from Jinan, while the wholly-owned subsidiary of china gas, china gas (Jinan), will hold 30.3%, and tg smart energy's fully owned subsidiary, ganghua gas investment, will hold 18.7%.

After the merger, shandong ganghua will have 2.45 million customers, with an annual gas sales volume of over 1 billion cubic meters. tg smart energy stated that this merger is to align with the gas development plan of the Jinan municipal government, expand the group's scale and scope of operations in Jinan, seize the opportunity in the city-enterprise gas reform, while also integrating both sse select resources industries index, optimizing asset allocation, and building stronger market competitiveness and risk resistance.