Yanchang Canada, which is formed for the purpose of completing the arrangement, is wholly owned by Yanchang Petroleum International.

According to the Canadian oil and gas company Novus, the deal is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta).

In August 2013, Yanchang Petroleum entered into a subscription agreement with Yanchang Petroleum Group (Hong Kong).

Pursuant to the agreement, Yanchang Petroleum HK has agreed to subscribe for and Yanchang Petroleum International has conditionally agreed to issue a convertible bond in the aggregate principal amount of about C$217m ($205m).

The issuance proceeds of the convertible bond are said to provide additional financing for the arrangement.

Yanchang Petroleum is principally engaged in the exploration, exploitation and operation of oil and gas fields and refined oil wholesale and retail businesses.