Vitol Energy, one of the world's largest independent oil traders, has made a surprise sale of half its holding in Fortune Oil, the London-listed Chinese oil infrastructure and petrol station group.
In a deal worth about GBP9 million (about HK$113.85 million) the company's stake has fallen from 10.21 per cent to 5.46 per cent, and comes seven months after a trading agreement between the two companies lapsed.
Vitol has had long-standing connections with Fortune, and is a shareholder in several key projects including Fortune's flagship joint venture with Maoming Petrochemical Corp, as well as a stake in the ailing Fu Duo Liquefied Petroleum Gas Co in Zhanjiang.
Vitol is believed to have cut its stake because Fortune has diversified from its original trading activities into oil infrastructure and retail activities.
Sources close to the company also suggested Vitol might need cash to help pay annual bonuses to traders.
It is understood institutions bought most of the shares, on a day when Fortune was recorded as the most actively traded stock on the London Stock Exchange.