Hong Kong: StorageCo, a jv between Warburg Pincus and SouthernPec, has failed to complete a deal to sell storage assets to Guangdong Zhenrong, the South China Morning Post reports in the latest turn to ongoing Titan Petrochemicals takeover story.
Payment for the deal has been in an escrow account since December, an insider said, adding Warburg and SouthernPec have been "using various excuses not to complete the sale".
Warburg and Guangdong Zhenrong offered to bid for the storage assets from the liquidators of Titan. After negotiations, they agreed for Warburg and its partner SouthernPec to buy the assets and then sell them, which was supposed to be completed in December.
The assets, consisting of four onshore fuel storage facilities in the strategic ports of Guangzhou, Quanzhou in Fujian province, Shanghai, and Yantai in Shandong province, are reported to be the major profit resources of financially troubled Titan. [03/06/13]
