Summary
Exxon Mobil Corporation (XOM) filed an 8-K on March 1, 2005, to report the completion of the sale of its 3.7 percent stake in China Petroleum and Chemical Corporation (Sinopec). The divestment, which occurred after the close of the Hong Kong market on February 28, 2005, successfully raised approximately HK$10.7 billion (US$1.37 billion) by selling shares at HK$3.38 each. This strategic move is expected to have a positive impact on ExxonMobil's earnings for the first quarter of 2005. This sale represents a significant exit from a substantial investment made by ExxonMobil in October 2000, when it acquired approximately 3.2 billion Sinopec 'H' shares at HK$1.61 per share during the company's international flotation. The company's decision to sell this stake suggests a refocusing of its strategic priorities or a realization of capital gains from this investment.
Key Highlights
- 1ExxonMobil completed the sale of its 3.7% stake in Sinopec.
- 2The transaction raised approximately HK$10.7 billion (US$1.37 billion).
- 3The sale price for Sinopec shares was HK$3.38 per share.
- 4The sale occurred after the close of the Hong Kong market on February 28, 2005.
- 5The positive earnings impact will be recognized in the first quarter of 2005.
- 6ExxonMobil originally acquired its Sinopec stake in October 2000 for HK$1.61 per share.