Beijing Enterprises Holdings Ltd said Tuesday it would buy from its parent company 22.01 percent of city gas pipeline operator, China Gas Holdings Limited, for HK$8.22 billion ($1.06 billion) to bolster its position in the natural gas sector.

Beijing Enterprises Holdings will buy China Gas shares from parent Beijing Enterprises Group Co at HK$7.80 each, it said in a filing with the Hong Kong bourse.

The deal will be settled with HK$2 billion in cash and by the issue of 113.13 million new Beijing Enterprises Holdings shares at HK$55 each to the parent, increasing the parent's stake in Beijing Enterprises Holdings to 61.59 percent from 57.86 percent.