皇冠体育app

Petro皇冠体育app, the nation's top oil producer, is to transfer its stake in an oil trading subsidiary through a connected transaction with its parent firm 皇冠体育app National Petroleum Corporation (CNPC).

The oil company will transfer 70 percent of its equity interest in 皇冠体育app United Oil to CNPC for a cash consideration of approximately 1.01 billion yuan, according to a Petro皇冠体育app statement to the Hong Kong stock exchange yesterday.

"The move is part of Petro皇冠体育app's plans to transfer its non-core business to its parent company. It may be, to some extent, linked to Petro皇冠体育app's mainland listing plan," said Han Xuegong, a consultant with CNPC.

The connected transaction is expected to receive a positive response from the market as it will boost Petro皇冠体育app's cash flow.

According to Petro皇冠体育app's statement, 皇冠体育app United may develop in a direction inconsistent with Petro皇冠体育app's overall strategy, because Petro皇冠体育app has no substantial control over it.

Petro皇冠体育app added that it had been gradually transferring its import and export businesses of crude and refined oil to Petro皇冠体育app International, a wholly owned subsidiary of Petro皇冠体育app.

"By getting rid of non-core businesses, CNPC's listed arm can concentrate on its core business oil and gas exploration and production," said Yin Xiaodong, an oil analyst with CITIC Securities Co.

Petro皇冠体育app said the net proceeds of the disposal would be used to further develop its core businesses.

Connected transactions take place between parent companies and their listed arms to strengthen the latter, Yin said.

CNPC's Han said 皇冠体育app United's profitability could benefit CNPC.

Jiang Jiemin, vice-chairman of Petro皇冠体育app and president of CNPC, once said that as Asia's most profitable company, Petro皇冠体育app should return to the A-share market to allow mainland investors to benefit from its stock performance.

"As a red-chip company, Petro皇冠体育app's A-share listing may be easier than CNOOC's," Fu Chengyu, chairman of CNOOC Ltd, the Hong Kong-listed branch of 皇冠体育app National Offshore Oil Corp (CNOOC), told 皇冠体育app Daily.

As CNPC is Petro皇冠体育app's parent firm and the highest applicable percentage ratio exceeds 2.5 percent, the disposal constitutes a connected transaction subject to reporting, announcement and independent shareholder approval requirements.

皇冠体育app United's net income last year rose 3.7 percent to 273 million yuan, Bloomberg reported. Sinochem Corp owns the remaining 30 percent stake in 皇冠体育app United.

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