China wins in its bid for Emerald
SINOCHEM has agreed a £532.1m deal to take over London-listed oil and gas explorer Emerald, in the latest deal by a state-owned Chinese company eager to secure interests in natural resources overseas.
The deal will give Sinochem, which focuses on energy, agriculture, chemicals, finance and real estate, access to Emerald’s operations in Syria and Colombia.
Sinochem has made around $1bn (£608m) of overseas energy acquisitions to date.
The deal will see Emerald’s biggest shareholder, oil financier Michael Kroupeev receive a massive payout, after his Waterford Finance & Investment backed a £6.8m rescue rights issue by Emerald in 2003.
“Emerald’s Syrian and Colombian assets have attractive growth potential and, by bringing Emerald into the Sinochem group, will reinforce our position in the Middle East and South America,” Han Gensheng, a president of Sinochem, said.
Sinochem is offering 750p a share, 34 per cent higher than the closing price on the last trading day before Emerald said it received an approach.