ARCO Buys Additional Interest in China's Zhenhai Refining and Chemical Company

abarrelfull wrote on 07 Aug 2012 06:18
Tags:

Latest News

• Want a weekly review of refining news?

• This Week in Refining
• RSS Feed

19 December 1996

ARCO (NYSE: ARC) announced today that it has purchased 64% of a convertible bond offering by China's Zhenhai Refining and Chemical Company (ZRCC) that closed today.
The purchase price, based on a conversion price of HK$2.80 per share, was U.S.$128 million. The coupon rate was 3%.

The seven-year bonds would convert to 353 million Hong Kong-traded 'H' shares. Upon conversion, ARCO would own approximately 591 million 'H' shares, or a 20% interest in ZRCC, China's third largest oil refiner. Prior to the offering, ARCO owned 237.6 million 'H' shares, or 9.9% of ZRCC's issued capital. These shares were acquired for $70 million in a 1994 public offering.

ZRCC owns and operates a refinery complex in East China approximately 100 miles south of Shanghai.

"We welcome this opportunity to increase our investment in ZRCC, which we believe to be the best refinery in China," said ARCO Executive Vice President Anthony G Fernandes. "Net proceeds from this offering will fund a Third Phase Expansion that will significantly increase Zhenhai's refining capacity, enabling the company to benefit from the growing demand for petroleum products in China and throughout the Asia-Pacific region."

• ARCO Buys Additional Interest in China's Zhenhai Refining and Chemical Company

---