Sinopec Sweetens Stock Offers for Share Reform in Two Units
China Petroleum & Chemical Corp. (600028), also known as Sinopec, plans to offer investors more of its domestic shares in Sinopec Shanghai Petrochemical Co. in exchange for the right to make all of the unit’s stock tradable.
Holders of Sinopec Shanghai A shares will receive five shares for every 10 held, compared with the 4.5 shares proposed previously, according to a filing by Shanghai-listed in Sinopec Shanghai yesterday.
Separately, Sinopec and Citic Ltd. will give retail investors in Sinopec Yizheng Chemical Fibre Co. five shares for every 10 held, compared with the 4.5 shares proposed previously, to make all shares tradable, according to an exchange statement.
The two Sinopec units will also propose stock option incentive plans within 12 months of their non-tradable shares becoming tradable, according to the statements. The controlling holders pledged not to sell the newly unlocked shares for 12 months, the companies said.
Shares of Sinopec Shanghai and Yizheng Chemical will both resume trading in Shanghai tomorrow, according to the filings. They have been suspended since May 30.
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