China Life, State Development & Investment Corp pour 22.8 billion yuan into Sinopec’s gas pipeline
China Life will buy 43.86 per cent of the Sichuan-to-East China pipeline and SDIC will purchase 6.14 per cent, leaving Sinopec to hold 50 per cent
China Life Insurance, the nation’s largest life insurer, has teamed up with SDIC Communications, an infrastructure unit of central government-backed investment firm State Development & Investment Corp, to invest 22.8 billion yuan in one of China Petroleum & Chemical (Sinopec)’s gas pipelines.
The introduction of the two external investors into one of the oil and gas giant’s prime assets is in line with Beijing’s state-owned enterprises reform policies aimed at improving corporate governance and efficiency, according to Sinopec.
The company said in a filing to Hong Kong’s stock exchange late on Monday: “Raising funds for future development of the Sichuan-to-East China gas pipeline project through the injection of external capital will promote the development of the natural gas business of Sinopec.
“By introducing external investors, the corporate governance structure will be further improved and the market-oriented reforms will be promoted to facilitate sustainable and steady development of
Sinopec.”
The two investors have pledged not to sell their stakes for at least one year unless they have the consent of the other shareholders.
China Life will buy 43.86 per cent of the Sichuan-to-East China pipeline and SDIC will purchase 6.14 per cent, leaving Sinopec to hold 50 per cent. The pipeline’s results will no longer be consolidated into Sinopec’s books after the sale, according to the company’s statement.