Sinopec Sells Retail Unit Stake for $17.5b

Sinopec Sells Retail Unit Stake for $17.5b

China Petroleum & Chemical Corp., Asia’s top refiner, agreed to sell a 29.99 percent stake in its retail business for 107 billion yuan ($17.5 billion) to a group of investors including China Life Insurance Co.
Sinopec said the unit will sell shares to 25 investors including Fosun International Ltd. (656), the investment company run by billionaire Guo Guangchang. Gas supplier ENN Energy Holdings Ltd. (2688) and white-goods maker Haier Electronics Group Co. will also buy stakes, Sinopec said in a Shanghai stock exchange filing Sunday, Bloomberg reported.
The deal comes amid a push by the Chinese government to restructure state-run companies and allow markets greater sway in resource allocation. The Sinopec retail business runs the country’s biggest network of fuel stations, with more than 30,000 locations, as well as 23,000 convenience stores.
RRJ Capital Ltd., run by former Goldman Sachs Group Inc. partner Richard Ong, will also invest in the unit, according to the filing.
Sinopec’s fuel-station business is a “huge gold mine” whose full potential “hasn’t been tapped,” said Sinopec Chairman Fu Chengyu.
Shares of Sinopec have risen 25 percent in Hong Kong trading since the start of the year, outpacing a 5.5 percent gain in the benchmark Hang Seng Index.

Short URL : http://goo.gl/8SZNCn

You can also read ...

Thermal Power Plants Capacity at 62,000 MW
Thermal power plants running on fossil fuels to generate power...
Nigeria will be able to participate in cuts when its output stabilizes at 1.8m bpd.
OPEC’s commitment to cutting production to clear a global glut...
Dana Energy Co. Signs Deal to Study Two Oilfields
Tehran-based Dana Energy Company has signed a memorandum of...
National Tanker Company Receives 2 Int'l Certificates
The National Iranian Tanker Company has been accredited with a...
Total Sets Oil Growth Target
French oil and gas major Total extended its oil production...
Oil Hits Eight-Month High
Oil prices rose on Monday to their highest in eight months...