China Resources to Sell HK Petroleum Arm to Sinopec

China Resources Enterprise said it would sell its Hong Kong petroleum distribution arm to top Asian oil refiner Sinopec for HK$4 billion (US$512 million) in cash.

Beijing-backed China Resources, which aims to become the largest consumer company in China and runs a brewery business jointly with SABMiller, said on Thursday it had signed a framework agreement with Sinopec on the disposal on Wednesday.

The net asset value of the unit, China Resources Petrochems Investments, will not be less than HK$1.6 billion, and a sale and purchase agreement is expected to be signed in mid-April, it said in a statement.