CAO to divest remaining stake in Xinyuan associate

SINGAPORE - Jet fuel trader China Aviation Oil (S) Corp (CAO) plans to divest its equity stake in a petrochemical-focused business based in China.

The Singapore-listed firm said during the trading lunch break on Tuesday (June 19) that it intends to dispose of its entire 39 per cent equity interest in China Aviation Oil Xinyuan Petrochemicals, a limited liability company incorporated in China.

CAO, which is a subsidiary of state-owned China National Aviation Fuel Group, said that for the purpose of the divestment, it will pursue a listing-for-sale through the China Beijing Equity Exchange.

The proposed divestment comes just over a decade after CAO sold a 41 per cent stake in its then 80-per cent-owned Xinyuan subsidiary.

CAO signed an agreement on Jan 29, 2007, to sell its 41 per cent equity interest at 20.5 million yuan to Shenzhen Juzhengyuan Petrochemicals.

CAO shares were down one Singapore cent at S$1.55 as of 12:58pm.