The group said in an exchange filing that its controlling shareholder “will be undergoing a corporate restructuring with another corporate conglomerate”
[SINGAPORE] Shares of China Aviation Oil (CAO) surged by more than 4 per cent on Tuesday (Nov 4) morning following word of a merger between Sinopec, the largest oil refiner in China, and China National Aviation Fuel (CNAF).
As at 9.28 am, the counter reached S$1.61 on the Singapore Exchange, up by around 4.5 per cent. By 10.03 am, it had eased to S$1.58, still trading 3.9 per cent higher or S$0.06.
Sinopec is expected to absorb all of CNAF’s assets and operations, if the merger goes through, a source said, according to a Bloomberg report.
CNAF owns 51 per cent of CAO, and, on occasion, balances domestic supplies by importing or exporting cargoes via trading arms like the group.
CAO noted in an exchange filing that its controlling shareholder “will be undergoing a corporate restructuring with another corporate conglomerate”. The counter-party, however, was not named.
The negotiations are reportedly continue ongoing, with no timetable or guarantee that the deal will proceed, people familiar with the subject said.
