China Petrochemical Corporation (Sinopec Group) announced Tuesday it has bought Geneva-based Addax Petroleum Corp through its wholly-owned Sinopec International Petroleum Exploration and Production Corporation (SIPC).
SIPC's bid for Addax is C$52.8 ($46) per share, totaling more than C$8.32 billion ($7.56 billion), the largest by cost overseas takeover transaction yet made by a Chinese oil company.
After acquisition of all the common shares of Addax, Sinopec will also take over all convertible bonds and equity options held by Addax, after which Addax will become a wholly-owned subsidiary of Sinopec, said an inner person with Sinopec Group.
In a statement, Sinopec said it would maintain the corporate management and all employees of Addax, and only send a few managers and technicians from Sinopec.
"The goal is to make Addax a real international oil and gas exploration and development company in Sinopec group," said the company.
The structure of Addax's oil and gas assets are rational and of good quality, the company's remaining recoverable reserves and production scale are large, and of good potential for more oil and gas reserves and output, according to Sinopec.
The acquisition of Addax, whose oil and gas reserves are similar to a middle-sized oil field in China, will accelerate Sinopec's international growth strategy and optimize its offshore oil and gas asset portfolio, said Zhang Kuikuan, general manager of Beijing Jcache Energy Information Services.