DeHeng Advised Sinopec on Completing Business Restructuring

2022-05-24

Recently China Petroleum & Chemical Corporation ("Sinopec," stock code: 600028, 00386.HK) completed business restructuring and a related-party transaction in which Sinopec purchased the thermal power, water supply and PBT resin business and related assets and equity transactions from related parties Sinopec Asset Management Co., Ltd., Sinopec Yizheng Chemical Fiber Co., Ltd., and Sinopec Yanshan Petrochemical Company, with a consideration of about RMB 7 billion, involving a large number of specific asset types, and transfers of assets-related claims and liabilities.  

The main purpose of the transaction was to improve the integrated operation level of Sinopec, optimize resource allocation, achieve business synergy, enhance its comprehensive competitiveness in local markets, and reduce related party transactions on the whole.

As the legal counsel, the DeHeng team, led by partner Kong Weiping, with primary support from lawyers Ma Sihong, Liu Jingjing and Wei Ping, provided whole-process legal support, including the design of transaction framework, legal due diligence, drafting of transaction documents and information disclosure documents, and multiple discussions and negotiations over the course of one year.