Exxon Mobil Corporation has completed the sale of its 3.7% stake in China Petroleum and Chemical Corporation, the largest refiner in China, for around $1.37 billion.
The Irving, Texas-based company sold the China Petroleum & Chemical Corp (known as Sinopec Corp) shares on the Honk Kong market through Merrill Lynch at a price of HK$3.38 per share, raising approximately HK$10.7 billion ($1.37 billion). The company said the positive earnings impact from this transaction would be reported in the first quarter of 2005.
ExxonMobil acquired around 3.2 billion ‘H’ shares in Sinopec at a price of HK$1.61 per share when 20% of the company was floated on international markets in October 2000. This investment facilitated the development of a strategic alliance with Sinopec.
ExxonMobil commented that it plans to continue its successful partnership with Sinopec despite the stock sale. The companies currently operate a joint venture refinery and marketing operation in China’s Fujian province which is currently undergoing a $3 billion expansion. They are also in discussions over a new refinery project in the Guangdong province.