MELBOURNE, May 4 (Reuters) - Two Chinese firms have increased their combined stake in Australia's No. 2 independent gas producer Santos Ltd STO.AX , taking advantage of a slump in its shares, and together now hold 15.1 percent of the company, Santos said on Thursday.
Private equity firm Hony Capital, whose backers include state-sponsored Legend Holdings Corp 3396.HK and Singapore's Temasek, bought 2.3 percent of Santos's shares after the market close on Wednesday.
Hony has been working with Chinese gas distributor ENN Ecological Holdings Co Ltd 600803.SS since 2015 to build up a stake in Santos. ENN is Santos's top shareholder.
Hony paid A$3.84 a share for 48 million shares, a 6 percent premium to Wednesday's closing price.
Santos shares sank to a six-month low last week, under pressure as the Australian government is leaning on the company to step up gas supply to the domestic market at the expense of its Gladstone liquefied natural gas (GLNG) exports.
Santos holds its annual meeting in Adelaide on Thursday.