Junzheng Energy & Chemical Group, an Inner Mongolia-based private chemical manufacturer, is expected to complete the takeover of the entire equity interest of Sinochem International Logistics (SIL), the logistics unit of China’s state-run chemical giant Sinochem.
SIL operates China’s largest chemical tanker fleet of 47 vessels with a total capacity of 450,000 dwt, and it is also the largest tank container provider in the country.
Sinochem listed its 100% equity shares in SIL for sale in November 2017 for a price of RMB3.45bn ($514m) as it looked to dispose of the asset.
A chemical tanker broker in Shanghai told Splash that the two companies have been working on the potential transaction for a long time and the deal is expected to be completed soon.
According to a letter Junzheng Energy sent to the Shanghai Stock Exchange to answer the stock exchange’s enquiry regarding the takeover, the company said it has been working to solve SIL’s debt with financial institutions, which is around RMB9.3bn ($1.38bn) in total, by providing a new loan to SIL and negotiating new deals with certain financial institutions.
Junzheng Energy is mainly engaged in the manufacture of chemical materials and chemical products including polyvinyl chloride resin, caustic soda, calcium carbide, ferrosilicon and cement clinker.