Stocks News
- Shanghai Petrochemical share reform offer unchanged
Date: 18-Dec-2007 Sources: (Shenzhen Daily)
SINOPEC Shanghai Petrochemical Co. said yesterday its offer to compensate shareholders under its share reform plan remained unchanged from its previous proposal.
Shanghai Petrochemical, a fuel producer and the largest ethylene producer in China by capacity, said it would offer holders of its Shanghai-listed yuan-denominated A shares 3.2 shares for every 10 tradable A shares held.
The firm first proposed the plan in October 2006, but shareholders rejected it as unattractive.
Shareholders will vote again on the offer Jan. 15.
Mainland regulators began allowing the conversion of nontradable shares into tradable stock in April 2005, when about two-thirds of the mainland stock market's capitalization was accounted for by nontradable shares held by major shareholders. Most of the mainland's more than 1,500 listed companies have already completed such share reform.
In the conversion process, holders of a company's nontradable shares have typically offered holders of the tradable stock a mix of free shares, cash or warrants to compensate them for any price fall resulting from the increase in tradable stock.
As well as its Shanghai listing, Shanghai Petrochemical has H shares listed in Hong Kong and American Depositary Receipts. The company is 55.56 percent-owned by China Petroleum & Chemical, also known as Sinopec.
In another development, Sinopec Yizheng Chemical Fibre Co. said Friday its offer to compensate shareholders under its A-share reform plan remained unchanged.
The Hong Kong and Shanghai-listed polyester producer, which is 42 percent-owned by Sinopec, said it would offer holders of its Shanghai-listed yuan-denominated A shares 3.2 shares for every 10 tradable A shares held.
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