China Life Insurance Co. Ltd. agreed to acquire a 43.86% stake in China Petroleum & Chemical Corp.'s Sichuan to East China gas pipeline for 20 billion yuan.
China Petroleum & Chemical, or Sinopec, on Dec. 12 entered into a capital injection agreement to sell a 50% interest in Sinopec Sichuan to East China Gas Pipeline Co. Ltd. to China Life Insurance and SDIC Communications Holding Co. Ltd.
The two investors will pay 22.8 billion yuan in aggregate for the 50% stake. China Life Insurance will hold a 43.86% stake and SDIC Communications will hold a 6.14% stake. SDIC Communications will pay 2.8 billion yuan for its stake.
Sinopec plans to use the sale proceeds to continue construction of natural gas pipelines and for general working capital.
As of Dec. 13, US$1 was equivalent to 6.90 Chinese yuan.