China Petroleum & Chemical Corp (600028.CN. 00386.HK), commonly known as Sinopec, has unveiled a plan to diversify the ownership of its oil products distribution business, the 21st Century Business Herald reported Tuesday.
The company, which is China’s top oil refiner, will bring in social and private capital into the marketing unit in order to boost its prospects, the report said, citing a statement from the state oil giant.
The specific capital ratio will hinge on market conditions, it said.
A Sinopec official was quoted as saying that the company will bring in up to 49 new shareholders, allowing social and private capital to take up to 30 percent of the shares.
Several rounds of appraisal and negotiations will be conducted for the introduction of private shareholders, who will bid for the investments, the report said.
Sinopec aims to develop the company’s sales network into a comprehensive services provider, on top of oil products sales. The unit will offer services such as convenience stores, auto-related business, advertisements as well as online-to-offline operations, according to the report.
Several foreign investment companies and oil firms are reported to have approached Sinopec for shareholding tie-ups. Chinese e-commerce giant Alibaba is also said to have held preliminary talks with the refiner for equity investment.
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