July 16 (Bloomberg) -- China Petrochemical Corp., Asia’s biggest refiner known as Sinopec Group, will sell its oil machinery business to listed unit Kingdream Plc.
Kingdream, an oil and drilling equipment maker, is planning a private placement to raise funds for the purchase, the company said in a statement to the Shenzhen Stock Exchange today. It didn’t disclose the value of the transaction and said it’s shares will continue to be suspended from trading.
Sinopec Group aims to evolve into a shareholding company and let professionally-run, listed units handle businesses such as oil and gas exploration, engineering and oilfield services, Chairman Fu Chengyu said in March. The refiner successfully merged units that designed and built chemical plants into Sinopec Engineering Group Co. and listed it in Hong Kong last year.
Sinopec Group owns 67.5 percent of Kingdream, according to data compiled by Bloomberg. Kingdream was suspended from trading in Shenzhen on May 28.
Sinopec Group’s plan comes amid a push by China’s government to restructure state-controlled companies and allow markets a bigger role in the allocation of resources. The company is at the forefront of this change by offering as much as a 30 percent stake in the fuel-retailing business of its listed unit China Petroleum & Chemical Corp. to private investors.
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