Bloomberg News

Sinopec Kantons to Raise HK$3.49 Billion in 1-for-1 Rights Offer

February 22, 2012

Feb. 22 (Bloomberg) -- Sinopec Kantons Holdings Ltd., a Hong Kong-listed oil trader, plans a rights offer of one new share for each one held to raise HK$3.49 billion ($451 million) to fund planned acquisitions.

The company will offer 1.04 billion rights shares at HK$3.37 each, the company said in a Hong Kong Stock Exchange filing yesterday. Sinopec Kantons’ controlling shareholder pledged to take up its full allotment of rights shares.

The oil trader will use 64 percent of the proceeds to fund the purchase of parent Sinopec Corp.’s stakes in five joint ventures, it said. It will use the balance of proceeds for development and operation of crude-oil terminals, oil storage facilities and to develop its logistics unit.

The acquisitions will make Sinopec Kantons the largest independent crude-oil terminal operator in China, letting it benefit from expected significant growth in capacity needs as energy demand gains, the company said when it first announced the purchases in December.

The offer is underwritten by Merrill Lynch Far East, according to yesterday’s statement.

Sinopec Kantons’ 2011 full-year net income rose to HK$213.5 million, or 20.6 cents a share, from HK$195.7 million, or 18.9 cents, according a separate filing yesterday. Sales rose to HK$19.7 billion from HK$16.6 billion. The company will pay a final dividend of 2 Hong Kong cents a share.

--Feiwen Rong. Editor: Joshua Fellman

To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at frong2@bloomberg.net

To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus