Focus of the week
[ China Petroleum & Chemical Corporation(600028) intends to transfer 50% shares of Shanghai Secco for 10 billion]
On March 7, China Petroleum & Chemical Corporation(600028) announced that it would publicly transfer 50% of the equity of Shanghai Secco Petrochemical Co., Ltd. (hereinafter referred to as Shanghai Secco) at the Shanghai United equity exchange, and the listing reserve price was preliminarily determined to be 10.307 billion yuan.
The Transferred Equity comes from China Petroleum & Chemical Corporation(600028) and its holding subsidiary China Petroleum & Chemical Corporation(600028) Shanghai Gaoqiao Petrochemical Co., Ltd. (hereinafter referred to as Gaoqiao Petrochemical), with 15% and 35% respectively.
China Petroleum & Chemical Corporation(600028) said that the transfer is to transfer part of the equity to introduce strategic partners, improve the level of the company’s chemical industry chain and support the transformation and development of the company.
Shanghai Secco, founded in 2001 and located in Shanghai Chemical Industry Zone, was originally a joint venture between China Petroleum & Chemical Corporation(600028) and BP. Among them, BP holds 50%, China Petroleum & Chemical Corporation(600028) directly holds 30%, and China Petroleum & Chemical Corporation(600028) Sinopec Shanghai Petrochemical Company Limited(600688) ( Sinopec Shanghai Petrochemical Company Limited(600688) . SH) holds 20%.
In April 2017, BP chose to withdraw from Shanghai Secco, and Gaoqiao Petrochemical took over 50% of its equity, with an acquisition price of about US $1.68 billion minus the corresponding dividends that BP should receive.
In the first two years of BP’s exit, Shanghai SECCO’s production and operation were in good condition. The net profit after tax in 2015 and 2016 were 2.19 billion yuan and 3.78 billion yuan respectively The Sinopec Shanghai Petrochemical Company Limited(600688) annual financial report shows that Shanghai Secco achieved an operating revenue of 21.626 billion yuan and an after tax profit of about 2.413 billion yuan in 2020.
On the 7th, Sinopec Shanghai Petrochemical Company Limited(600688) announced that it would give up the preemptive right of Shanghai SECCO’s equity transfer.
Shanghai Secco is a manufacturer of chemical materials. According to the official website, Shanghai Secco has large chemical plants with a design capacity of 1.09 million tons / year ethylene cracking, 650000 tons / year styrene, Shanghai Pudong Development Bank Co.Ltd(600000) tons / year aromatics extraction, 520000 tons / year acrylonitrile and other large chemical plants, and can provide more than 3.2 million tons of petrochemical products to the market every year.
