Zhenrong Energy looks to bail out Titan

Zhuhai Zhenrong Energy, one of China’s top five oil traders, is in talks with Titan Petrochemicals to invest in shares of the financially troubled company.

Zhuhai Zhenrong Energy would pay RMB150m to RMB 200m to subscribe for new shares representing not less than 51 percent of the enlarged share capital of Titan, according to a Titan filing to the Hong Kong stock exchange. Zhenrong would also pay RMB 1.13bn to purchase Warburg Pincus' interest in Titan, and use RMB320m to rent Titan’s oil facilities in Guangzhou, Fujian and Quanzhou.

Shareholder Warburg Pincus has filed a lawsuit recently to liquidate Titan.

Zhuhai Zhenrong Energy was established in 1994 with a military background and the company has been very much involved with Sino-Iran oil trade.

In January of this year, the US State Department announced sanctions against three foreign companies in the energy business with Iran; Zhuhai Zhenrong was one of them.  [18/07/12]

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