18 June 2013 08:15 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Hengyang Petrochemical Logistics said on Tuesday it will use the proceeds from an investment deal with Macquarie Everbright Greater China Infrastructure Fund (MEGCIF) to build new petrochemical ports and storage tanks along the Yangtze River.
MEGCIF Investments 5 (MEGCIF5), a firm owned by infrastructure fund MEGCIF, will invest yuan (CNY) 271.3m ($44.3m) into Hengyang Holding as part of a “subscription agreement”, the company said in a statement.
Hengyang Holding is a wholly-owned subsidiary of the Hengyang group.
“The net proceeds will be used for the group’s [Hengyang Petrochemical Logistics] business expansion along the Yangtze River and corporate restructuring exercise, including a buyback of a 40% equity interest in its two subsidiaries in Wuhan and Chongqing,” it said.
Following the agreement, MEGCIF5 will own 35% of the issued share capital of Hengyang Holding, which will have full ownership of Hengyang’s subsidiaries after the planned corporate restructuring.
The construction of new petrochemical jetties and storage tanks with an overall storage capacity of about 240,000 cubic meters (cbm) in Hengyang’s three subsidiaries in Wuhan, Chongqing and Yueyang is scheduled to be completed in the next one to two years, the company said.
Together with the expansion of its existing plant in Jingjiang, Jiangsu, Hengyang’s overall storage capacity is expected to rise from 265,600cbm to around 962,600cbm in the next two years, it added.
($1 = CNY6.13)
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