Photo/VCG

March 28 (NBD) -- Rongsheng Petrochemical (002493. SZ； The Company) announced on March 27 that in order to introduce overseas strategic investors, its controlling shareholder Zhejiang Rongsheng Holding Group (Rongsheng Holding) intends to transfer 1.013 billion shares to the wholly-owned subsidiary of its strategic partner Saudi Aramco, Aramco Overseas Company B.V. (AOC).

At the same time, Rongsheng Petrochemical and its subsidiaries signed a Strategic Cooperation Agreement with Saudi Aramco and its affiliates such as crude oil supply, refining and chemical products sales, crude oil storage, and technology research and development.

As part of the deal, AOC will acquire the 10.13 billion shares of Rongsheng Petrochemical at a price of 24.3 yuan (3.62 US dollars) per share, which is nearly double the current share price of 12.91 yuan.

Rongsheng Holding currently holds 61.46% of the Company's shares, will reduce its stake to 51.46% after the deal is closed.

Saudi Aramco has promised to supply Rongsheng Petrochemical's refinery in Zhejiang Province with 480,000 barrels of Arab crude oil per day for a fixed term of 20 years. In addition, Aramco Trading Singapore Pte.Ltd (ATS) has agreed to supply an additional 80,000 barrels per day of Arab or non-Arab crude oil.