China oil giant CNPC sells $3.8 B of engineering assets
(Reuters) China National Petroleum Corp. (CNPC), the country's largest state energy group, will sell $3.8 B worth of engineering related assets to a listed arm as part of a push to restructure its non-core business.
Xinjiang Dushanzi Tianli High & NewTech Co., a unit listed on the Shanghai exchange, said late on Friday that it plans to buy engineering construction businesses from CNPC via cash and a share issue.
It aims to raise up to $898 M in a private placement of shares to help fund the acquisition.
The seven subsidiaries that CNPC is selling to the listed unit include China Petroleum Pipeline Bureau, China Petroleum Engineering and Construction Corp., China Huanqiu Contracting & Engineering Corp., China Kunlun Contracting & Engineering Corp., China Petroleum Engineering Co., CNPC Engineering Co. and CNPC Northeast Refining & Chemical Engineering Co.
Under Beijing's broad reform agenda to make its state-owned enterprises more efficient and competitive, CNPC said it will restructure non-core departments, such as oilfield services, engineering and financial operations, and list them on stock exchanges.
CNPC said last week it will sell $11 B worth of financial assets to another listed arm Jinan Diesel Engine.
Reporting by Meg Shen and Lee Chyen Yee
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