CNPC back­door list­ing es­ti­mated at value of $3.7b

China Daily (USA) - - BUSINESS - By BLOOMBERG

China Na­tional Petroleum Corp, the coun­try’s big­gest oil and gas pro­ducer, is a step closer to com­plet­ing a back­door list­ing of its en­gi­neer­ing as­sets af­ter its Shang­hai-listed tar­get com­pany ap­proved the plan.

Xin­jiang Dushanzi Tianli High & New Tech Co, based in north­west­ern China’s Xin­jiang Uygur au­ton­o­mous re­gion, agreed to buy seven en­gi­neer­ing com­pa­nies from CNPC at to­tal es­ti­mated value of 25 bil­lion yuan ($3.7 bil­lion), it said in a Shang­hai ex­change fil­ing on Sun­day. Xin­jiang Dushanzi will sell 19 bil­lion yuan worth of new shares to CNPC and will pay 6 bil­lion yuan in cash to fi­nance the pur­chase, it said in the state­ment.

CNPC Chair­man Wang Yilin said in Fe­bru­ary the com­pany aims to spin off its oil­field ser­vices busi­ness as it seeks to be­come more ef­fi­cient.

The State-owned en­ergy giant will be among the first of the na­tion’s ex­pan­sive gov­ern­ment-run en­ter­prises to start re­forms that will trans­form it into a strate­gic hold­ing com­pany that no longer man­ages day-to-day op­er­a­tions of its sub­sidiaries.

Ji­nan Diesel Engine Co, an­other CNPC back­door list­ing tar­get, last month an­nounced de­tails of a share sale to raise as much as 20 bil­lion yuan as part of a plan to take on fi­nan­cial busi­ness as­sets from the sprawl­ing en­ergy com­pany.

Xin­jiang Dushanzi plans to buy units in­clud­ing China Petroleum En­gi­neer­ing & Con­struc­tion Corp and China HuanQiu Con­tract­ing & En­gi­neer­ing Corp, the fil­ing shows.

worth of new shares Xin­jiang Dushanzi will sell to CNPC in ad­di­tion to the pay­ment of 6 bil­lion yuan in cash to fi­nance the pur­chase

XIN­HUA

China Na­tional Petroleum Corp tech­ni­cal em­ploy­ees check fa­cil­i­ties at Qing­hai oil­field.

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