Sinopec Shanghai Petrochemical Plans RMB600 Million Capital Injection for Carbon Fiber Subsidiary

Sinopec Shanghai Petrochemical Co ( (HK:0338) ) just unveiled an announcement.

Sinopec Shanghai Petrochemical has approved a capital increase of up to RMB600 million for its wholly owned subsidiary, Carbon Fiber Company, to be executed via a combination of non-public agreement and public tender. Sinopec Corp. plans to subscribe for up to RMB300 million of the new registered capital, with its eventual stake in Carbon Fiber Company capped at 25%, while the remaining portion of up to RMB300 million will be offered to no more than three strategic investors through a public tender process. The transaction, which may or may not proceed pending completion of the tender and signing of final agreements, will result in Sinopec Shanghai Petrochemical retaining at least 50% ownership, ensuring Carbon Fiber Company remains a consolidated subsidiary and signaling an effort to bring in industrial and financial partners to support its strategic development without relinquishing control.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

More about Sinopec Shanghai Petrochemical Co

Sinopec Shanghai Petrochemical Company Limited is a major integrated petrochemical producer in China, operating within the petroleum and petrochemical industry. Through subsidiaries such as Carbon Fiber Company, it is involved in advanced materials, including carbon fiber, serving industrial and strategic downstream markets in the domestic PRC (excluding Hong Kong, Macao and Taiwan).

YTD Price Performance: 12.05%

Average Trading Volume: 9,679,101

Technical Sentiment Signal: Hold

Current Market Cap: HK$26.1B

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