China's Zhejiang Rongsheng to transfer over 10pct shares to Saudi Aramco

Rongsheng Petrochemical Co., Ltd. (Rongsheng Petrochemical, 002493.SZ) announced on Tuesday that its parent company will transfer 10 percent plus one of its shares to Aramco Overseas Company B.V. (AOC) at a price of 24.3 yuan per share. 

Zhejiang Rongsheng Holding Group (Zhejiang Rongsheng), the parent company and also controlling shareholder of Rongsheng Petrochemical, signed the agreement with AOC on Monday and will receive about 24.6 billion yuan for the transaction, according to the A-share listed Chinese oil refiner's announcement.

AOC is a wholly-owned subsidiary of  Saudi Arabian Oil Company (Saudi Aramco), one of the world's leading oil producers.  

Mohammed Y. Al Qahtani, Aramco's executive vice president of downstream said the transaction is an important acquisition for the company in a key market, supporting its growth ambitions and advancing its liquids-to-chemicals strategy. It also demonstrates Aramco's long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector.

On the same day, Rongsheng Petrochemical and Saudi Aramco also signed a strategic cooperation agreement, according to which Aramco will secure long-term and stable crude oil supply for Rongsheng Petrochemical and provide overseas sales channels for the Chinese company's products. 

The latest share price of Rongsheng Petrochemical is at 14.2 yuan per share, up 9.99 percent hitting the up-limit of the trading day on Tuesday.