PE group invests in Sinopec fuel retail unit
A group of private equity investors, including CICC Capital, RRJ Capital and Hopu Investment Management, have invested in Hong Kong-listed Sinopec as the Chinese oil refiner agreed to sell a RMB107.1 billion ($17 billion) stake in its retail business.
Sinopec said in a regulatory filing that the retail unit - Market Corp - will sell a combined 29.99% stake to 25 investors. CICC Private Equity will invest RMB6 billon for a 4.2% stake via three investment vehicles, while Bohai Industrial Investment will acquire a 1.68% stake for RMB6 billion. RRJ will purchase 1% interest for RMB3.6 billion and Hopu will invest RMB1.42 billion for 0.4% stake.
Meanwhile, Haixia Capital Management and CITIC Goldstone will invest RMB3.4 billion and RMB1.5 billion, respectively.
Other investors include China Life Insurance, Fosun International, Haier Electronics Group, gas supplier ENN Energy Holdings, a joint venture launched by People's Insurance Group of China and internet giant Tencent Holdings.
The deal comes as China pushes to restructure its state-owned enterprises by bringing in more private capital to diversify ownership.
After completion of the capital injection, Sinopec will hold a 70.01% shareholding interest in the retail unit. The group's marketing and distribution unit has a network of more than 30,000 gasoline stations and 23,000 convenience stores, as well as oil-product pipelines and storage facilities.
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