Sinopec Corp, the largest refiner in Asia Petroleum, said in a statement Sunday that it will sell a stake of 107.1 billion yuan (17.5 billion United States Dollars) in his unit retail in a group of 25 Chinese and foreign investors.
This sale, the largest privatization to take place in China since President Xi Jinping arrived in power, comes as the Chinese government encourages the restructuring of public enterprises through the use of private capital and expertise.
Among the major investors in this case, which involves a combined acquisition of 29.99% of Sinopec, figure one of the largest asset managers in China Harvest Fund Management Co Ltd, will spend 15 billion yuan with its subsidiary Harvest Capital Management. China Life Insurance and a consortium that includes People's Insurance Group of China Co Ltd and Tencent Holdings Ltd will take them a 10 billion yuan each.
Other investors include Fosun International, the gas supplier ENN Energy Holdings Ltd. Chinese and manufacturer of household appliances Haier Electronics Group Co Ltd.
In the agreement also included foreign investors, as the former investment fund RRJ Capital private Asian, founded by Richard Ong, Goldman Sachs and former negotiator Hopu Investment Management, with a stake of 3.6 billion yuan.
The marketing and distribution unit of Sinopec, that includes a wholesale, has over 30,000 service stations, more than 23,000 stores and the product pipelines and storage facilities.
The agreement will improve the value of low-margin business, strengthen the group's finances and strengthen investment in exploration and production.
The president of Sinopec, Fu Chengyu, had previously said he hoped that investors bring expertise and ideas to improve sales of products other than fuel in its service stations.
Unlike Western markets, where non-fuel activities, such as convenience stores and things like fast food or car wash, can represent more than half of the profits of a station at Sinopec 99% of retail sales come from gasoline.
In the last month, Sinopec has signed agreements with several Chinese companies to make greater use of gas stations and offer more services to consumers.
In August the company has signed a preliminary agreement with the Internet giant Tencent to enter the digital market in the retail sector.
