BP divests Sinopec stake

Shares priced at an impressively slim discount to spot.

BP plc offloaded a 2.1% stake in Chinese integrated oil major Sinopec yesterday Tuesday raising HK$5.76 billion $739 million from a sale that represents 10.9% of the company's H share capital. With Morgan Stanley as lead manager, the UK-based group sold 1.829 billion shares at the tightest end of a HK$3.10 to HK$3.15 pre-marketed range.

Pricing at HK$3.15 per share equates to a 0.79% discount to Sinopec's HK$3.175 close and was aggressive in the context of the 8% average achieved by most Greater China placements so far this year. Indeed, when BP sold a 2% stake in Petrochina last month, it priced it at an 8% discount...

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