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Volume 14,Issue 3 Autumn 2012

China Aviation Oil sells 5% stake in CLH for 171-M Euros


China Aviation Oil (Singapore) Corp. said on January 24 that it has reached an agreement with Caixa De Afforros De Vigo Ourense E Pontevedra (Caixanova) to sell its 5 percent interest in Compania Logistica de Hidrocarburos (CLH) for 171 million Euros (about US$222 million). CAO said part of the sale will be used to pay the first installment of its deferred debt obligation amounting to US$62.2 million, which will become due on March 28 this year. In October, CAO announced that it was selling its 5-percent stake in CLH. Caixanova won the bidding. As of September, the company book value investment in CLH amounted to S$115 million (about US$75 million). With the sale amounting to 171 million Euros (or about S$342 million), the company gains S$183 million (or about US$119 million). “The (company’s) directors are considering various options for the use of the surplus sale proceeds and will take into consideration the capital structure of the Group, the need for funds for investment and working capital, the ability of the Company to further reduce its debt obligations and a stable dividend policy,” CAO said in a statement.

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