Oct 29 (Reuters) - Fortune Oil Plc (FOOI.L: Quote, Profile, Research, Stock Buzz), a provider of gas and oil infrastructure in China, said on Wednesday that Hong Kong-based Kerry Holdings Ltd will not be investing the planned $36 million in the company.

Fortune Oil said it mutually agreed with Kerry to rescind the subscription agreement announced on Sept. 1, whereby Kerry was to make the investment for a 15 percent stake in Fortune Gas, the holding company for Fortune Oil’s gas operations. [ID:nBNG44489]

However, Kerry, an investment vehicle controlled by billionaire Robert Kuok, will continue to support the growth of Fortune Gas through Fortune Oil. Kerry already holds a 4.74 percent stake in Fortune Oil after having invested 9.9 million pounds ($15.85 million) in a placing in July.

Fortune Oil also said it has completed the formalities related to the $36 million investment by palm oil firm Wilmar International Ltd (WLIL.SI: Quote, Profile, Research, Stock Buzz). Fortune Oil said revenue from its gas business continues to grow in line with expectations. ($1=.6247 Pound) (Reporting by Kumar Alagappan in Bangalore; Editing by Himani Sarkar) source

Posted on Thursday, October 30th, 2008 at 8:20 am and is filed under energy investment.
Tags: Bangalore, China, Fortune Gas, Fortune Oil Plc, gas, gas and oil infrastructure, gas operations, GBP, Hong Kong, Investment, Kerry Holdings Ltd, palm oil, Partnership, Robert Kuok, USD, Wilmar International Ltd.