Monday, 15 September 2014

Sinopec sells stake in retail arm for $17.5bn

Sinopec petrol station attendant

China's largest refiner Sinopec has struck a deal with 25 local and foreign investors, to sell a 30% stake in its retail arm.
The retail unit will be issuing new shares to the group of 25 investors, which are mostly financial companies like insurers and fund managers, to raise $17.5bn.
The company's shares fell by 6.8% on Monday in Hong Kong trade.
Sinopec's retail arm operates more than 30,000 petrol stations across China.
It also owns more than 23,000 convenience stores under the Easy Joy brand, as well as oil-product pipelines and storage facilities.
Local investors named in the transaction include China Life Insurance as well as Chinese white goods manufacturer Haier Electronics and internet giant Tencent.
Last month Sinopec signed a preliminary agreement with Tencent to explore introducing mobile payment systems at its petrol stations.
In May this year, the company also signed an agreement with China Taiping Insurance to sell car and life insurance at its petrol stations.

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