Sinopec closed a deal to buy 10% stake in SIBUR

Sinopec closed a deal to buy 10% stake in SIBUR

MOSCOW, December 17. Chinese petrochemical Corporation Sinopec (China Petrochemical Corporation) has closed a deal to buy 10% shares of SIBUR, the biggest Russian gas processing and petrochemicals group. As they say in the joint message of the companies, Sinopec may also become a strategic partner for the construction of the Amur gas-chemical complex.

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“The investment will facilitate the exchange of expertise and resources that will strengthen the position of companies in the market and strengthen the strategic cooperation between Russia and China. Sinopec as a strategic investor will be able to nominate its own representative to the Board of Directors of SIBUR”, – stated in the message.

“This transaction represents one of the stages of the strategic development of our petrochemical business abroad. Further strengthening of partnerships will allow the Corporation Sinopec to diversify the sources of supply of petrochemical products in the long term,” said Sinopec President Wang Yipu.

Earlier on Thursday said the co-owner of “SIBUR” Leonid Michelson, a 10 percent stake in the company will be sold to China’s Sinopec in proportion to the ownership interests of shareholders.

Currently the shareholders of “SIBUR Holding” are Leonid Mikhelson (50.2% stake), Kirill Shamalov (21,3%), Gennady Timchenko (15,3%), current and former management (13.2 per cent).

SIBUR and Sinopec in September 2015 during the state visit of Russian President Vladimir Putin to China the President of China XI Jinping signed an agreement on joining Sinopec in the capital “SIBUR” as a strategic investor.

In December, the head of the Federal Antimonopoly service (FAS) of Russia Igor Artemyev told journalists that the government Commission on monitoring foreign investments approved the petition for the acquisition of the Chinese Sinopec shares of SIBUR.

Sinopec received the right to acquire in two stages of 20% shares of SIBUR, the first 10% will be acquired over 1,338 billion, then in the next three years, Sinopec won the right to buy another 10%.