37 investors express interest in Sinopec petrol stations
China Petroleum & Chemical (Sinopec) has received 37 non-binding expressions of interest from would-be investors in its open tender for up to 30 per cent of its fuel distribution operation.
Shares of China Petroleum & Chemical (Sinopec) fell 0.37 per cent in early trade on Tuesday, after chairman Fu Chengyu said on Monday the nation’s second largest oil and gas producer has received 37 non-binding expressions of interest from would-be investors in its open tender for up to 30 per cent of its fuel distribution operation.
The potential investors have until the end of the month to enter binding bids on the sale that will be completed by the end of next month, he said, adding mainland firms and those that can help Sinopec lift non-fuel sales at its fuel stations will have priority to invest.
“The bidding process is a bit like an initial public offering, those offering the highest price and offer the best value creation proposal would be more likely to be selected,” he told reporters on Monday.
Sinopec in recent weeks has entered into non-binding preliminary agreements with “online supermarket” shopping platform operator 1haodian, and Taiwanese retailing major Ruentex Group, for potential joint merchandise procurement to lower costs.
Analysts believe Sinopec is eyeing the possibility to let the online retailers use the over 20,000 convenience stores run by its over 30,000 fuel stations as goods pick-up points and sales service centres.
Sinopec in May has also signed a framework cooperation agreement in May with China Taiping Insurance to sell car and life insurance at its petrol stations.