Sinopec Corp and subsidiary to acquire equity interests from parent

03-Jan-08

China Petroleum and Chemical Corporation (Sinopec Corp) plans to acquire equity interests in three oil refineries and 63 gas stations from its parent company, Sinopec Group Company. Sinopec Yangzi Petrochemical, a subsidiary wholly owned by Sinopec Corp, will also acquire equity interests of two oil refineries from Sinopec Group. The acquisitions are valued at 3.66 billion yuan (US$501 million), to be paid for by the internal resources of Sinopec Corp and Sinopec Yangzi Petrochemical. The proposed transactions require approval of the State-owned Assets Supervision and Administration Commission and other relevant authorities. Under an agreement signed between Sinopec Corp and Sinopec Group, Sinopec Corp will acquire 100% state-owned equity interest in Sinopec Hangzhou Oil Refinery Plant, 59.47% interest in state-owned equity in Yangzhou Petrochemical Plant and a 75% interest under the joint venture contract of Zhanjiang Dongxing Petrochemical Company Limited. Sinopec Corp will also acquire the operating rights of 63 gas stations from Sinopec Sales and Industrial Company, a wholly owned subsidiary of Sinopec Group. Sinopec Yangzi Petrochemical is to acquire Sinopec Group's 100% state-owned equity interest in Taizhou Petrochemical and 100% State-owned shareholding in Qingjiang Petrochemical.