Hengyang Petrochemical asks for SGX trading suspension after being added to US sanctions list
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SGX-listed Hengyang Petrochemical has been sanctioned by the US for allegedly being involved in the transshipment of petrochemicals to Iran.
PHOTO: ST FILE
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- Hengyang Petrochemical Logistics shares are suspended after the company, CEO Gu Wenlong, and affiliate Foreversun were added to the US SDN List on Oct 9.
- The US Treasury alleges Foreversun facilitated illicit Iranian petrochemical shipments, with Hengyang owning and controlling Foreversun, and Gu Wenlong as chairman/CEO.
- Hengyang is assessing the impact, seeking legal advice, and may try to be removed from the SDN List. This follows similar US action against 17Live Group.
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SINGAPORE - Singapore-listed Hengyang Petrochemical Logistics has requested that its shares be suspended from trading on the local exchange, after the company, its chief executive and one of its affiliates were added to a US sanctions list.
The Singapore-registered, China-based petrochemical logistics and storage service provider on Oct 16 requested a suspension of the trading of its shares, which have been halted from trading since Oct 13.
Hengyang and its CEO and controlling shareholder Gu Wenlong, as well as Jiangyin Foreversun Chemical Logistics (Foreversun) – in which Hengyang holds an indirect 41.64 per cent stake – were added to the US Specially Designated Nationals (SDN) List on Oct 9.
The move targets intermediaries involved in the transshipment of illicit Iranian petrochemical products through third countries to obfuscate their origin, the US Department of Treasury’s Office of Foreign Assets Control (Ofac) said in a statement on Oct 9.
In an Oct 16 filing on the Singapore Exchange signed by Mr Gu, Hengyang noted that it is “trying its best to assess the impact of the designations on the SDN List, including the potential financial and operational impact on the group and any restrictions imposed by stakeholders”.
The company will require some time to assess the potential implications of the designations on its business activities, operations and stakeholder relationships, Hengyang said.
It will also seek appropriate legal and professional advice and assess the validity and basis of the designation, and possible avenues to seek the removal of those designated from the SDN List.
Ofac said in a statement that Foreversun, a petrochemical terminal operator in Jiangyin, China, knowingly facilitated multiple shipments of illicit Iranian-origin petrochemical products since 2023, including several from a sanctioned vessel.
In its statement, Ofac noted that Hengyang owns and controls Foreversun, its principle operating entity. It added that Mr Gu is also chairman and CEO of Foreversun.
Hengyang, Mr Gu and Foreversun were part of 60 individuals, entities and vessels sanctioned over their roles in facilitating the shipment of oil and liquefied petroleum gas from Iran to overseas end users.
Shares of Hengyang, which is listed on Catalist, last traded at 15 cents. Hengyang is the second SGX-listed company affected by the US government’s expanding oversight, as Washington broadens sanctions to cover more firms linked to Iranian petroleum and petrochemicals, Cambodian scam operations and other illicit activities.
Ms Karen Chen Xiuling, an independent director of Singapore-listed live-streaming platform 17Live Group, resigned from her role on Oct 15 accused of running a global scam operation involving forced labour.
Ms Chen was among three Singaporeans and 17 Singapore-registered but non-listed entities added to the list over their involvement in the Cambodia scam operation.
