China LNG Group lashes back at fraud claim by short-seller

July 17, 2015 13:14
Albert Kan is denying claims China LNG Group fraudulently obtained contracts from the Chinese government and is incapable of generating decent revenue. Photo: HKEJ

China LNG Group Ltd. (00931.HK) is pushing back against accusations by a short-seller that it is engaged in fraud.

Chairman Billy Albert Kan called the claims by Glaucus Research "illegitimate", according to the Hong Kong Economic Journal.

Glaucus earlier accused the natural gas company of fraudulently obtaining contracts from the Chinese government and of being incapable of generating decent revenue.

Kan said two of the 20 agreements with the government have been canceled because of a change in business strategy.

The two deals were signed with Ping An Securities and a subsidiary of China National Offshore Oil Corp, he said.

Kan said the cancellations were prompted by changes in China LNG Group when it entered the natural gas market in April last year.

The business only began to generate revenue in May.

The company continues to lease out ships and vehicles for the natural gas industry, he said.

It is seeking to acquire China Financial Leasing Group Ltd. (02312.HK) by buying a 12.77 percent stake in a hostile takeover.

China LNG Group has hired a financial adviser and set up an independent committee to oversee the deal.

[Chinese version中文版]

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Hong Kong Economic Journal