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China firm to get $130m in rescue plan
(Asia Pulse)
Updated: 2005-12-05 19:34
China Aviation Oil will receive $130 million in funds from its parent CAOHC, oil group BP and Singapore state-owned investor Temasek as part of a rescue plan one year after the jet fuel trader collapsed under half a billion dollars in trading losses.
CAO , whose shares remain suspended since the scandal broke in November 2004, said on Monday BP would inject $44 million into CAO for a 20 percent stake, giving the world's second-largest oil group access to China -- the world's fastest-growing energy market.
Temasek Holdings [TEM.UL] will pay $10.2 million for a 4.7 percent stake in Singapore-listed CAO, while its parent, state-owned China Aviation Oil Holding Company, will invest $75.8 million and cut its stake in the firm to 51 percent.
"The Chinese government is proceeding with the deregulation of the jet fuel market. The regulation poses challenges and opportunities for CAO Singapore. We are well positioned for the future," Gu Yanfei, head of the special task force of CAO Singapore told a news conference.
BP has also signed an agreement with CAO to inject assets into the Singapore-listed company six to nine months after the shares resume trading.
Separately, the company also announced its 2004 results which showed a net loss of S$864.87 million ($511.4 million) against a profit of S$54.27 million in 2003. The company made a loss of S$884.75 million from derivatives trading.
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