Canadian retailer Alimentation Couche-Tard Inc and China’s Tencent Holdings are among the entities shortlisted to buy a minority stake in the retail arm of China’s Sinopec group, Reuters reported, citing people familiar with the matter.
China Life Insurance Co, ENN Energy Holdings, Fosun Group, Hopu Investment Management and Affinity Equity Partners have also progressed to the next round, according to the report.
Sinpec plans to sell up to 30 percent of its retail arm, Sinopec Sales, by end-2014 as Beijing restructures government-owned assets.
Sinopec Sales is said to have booked a net profit of 25.1 billion yuan (US$4.1 billion) last year from over 30,000 service stations and more than 23,000 convenience stores.
The company wants to boost non-fuel sales and is seeking investors to get into businesses such as car services, telematics, online-to-offline sales, financial services and advertising, the report said.
Sinopec Sales generated 1.49 trillion yuan in revenue in 2013, but contribution of non-fuel sales was less than one percent of the total.
Sinopec group is seeking to sell at least a 10 percent stake in Sinopec Sales, according to the Wall Street Journal.
The group plans to finalize the terms of its tie-ups in coming weeks and then restructure Sinopec Sales by the end of November before preparing for an initial public offering of the unit, the paper said Thursday.
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