Petrochemical giant is expected to inject $80m to acquire an 18 per cent stake in logistics operator
Listing candidate Guangdong Nan Yue Logistics will bring in Sinopec Corp as a strategic investor. Sinopec would spend $80 million for about 18 per cent of the logistics firm's enlarged share capital, say market sources.
The deal, approved by mainland authorities at the weekend, was seen as enhancing deliveries of Sinopec's petroleum and petrochemical products, the sources said. 'Nan Yue operates many service centres along expressways in Guangdong which can help smooth Sinopec's products delivery,' they said.
The logistics firm operates 29 service centres - consisting of petrol stations, convenience stores and maintenance shops - in Guangdong province.
Nan Yue plans to sell 138 million shares at an indicative price range of $3.31 to $3.55 each, potentially raising as much as $489.9 million to fund acquisitions and debt repayments.
The retail tranche of the offering will be launched on Friday. Sources said the institutional tranche is more than three times subscribed. China Everbright Capital is the arranger of the share sale.
Meanwhile, Growth Enterprise Market listing candidate Enric Energy Equipment Holdings saw its placement oversubscribed when its book closed on Thursday.
