While not final as Vitol and Temasek vie for stakes, the owners may use outsiders to boost confidence
China Aviation Oil (Singapore) (CAO) says it will unveil details of a stake sale to foreign investors early next week as part of a rescue plan in response to the company racking up US$550 million in oil futures losses last November.
The move will help the beleaguered company, which imports nearly all of the mainland's jet fuel, to improve risk management and governance standards.
'Nothing is final at the moment but we plan to make an announcement [on the stake sale] early next week,' a CAO spokesman said, declining to comment on the identity of potential investors.
The debt restructuring plan was approved by the Singapore High Court in June. CAO parent firm China Aviation Oil Holding intends to cap the stake sale at up to 30 per cent, Reuters in Singapore said, quoting a Beijing source.
Global oil giant BP offered to buy a 23 per cent stake for about US$45 million, while Europe-based oil trader Vitol made a similar offer. Singapore state investment firm Temasek Holdings is seeking a less-than-10 per cent stake for US$10 million, the report said.
BP and Temasek declined to comment while Vitol's spokesman was not available.
