Sinopec to launch a bid for Imperial
Oil exploration firm Imperial Energy is expected to rise this morning, after reports that one of China’s biggest state-owned oil companies is launching a bid to buy the company.
The China Petroleum and Chemical Corporation, commonly known as Sinopec, approached the firm last week and has already begun due diligence. It is thought that the board of Imperial, chaired by founder Peter Levine, has granted Sinopec access to its books.
Imperial, who specialises in exploration in Siberia, last month said it was in talks regarding a possible offer of £12.90 a share, or £1.3bn. Although it refused to name the bidder, the Indian press have reported that the interested party was India’s state owned Oil and Natural Gas Corporation (ONGC).
If the bid is successful, it will be the largest ever takeover of a London-listed firm by a Chinese rival. It is also the first time that an Indian and Chinese company have gone head-to-head to buy a British listed firm.
Despite speculation about a takeover, Imperial Energy’s share price continues to lag behind ONGC’s offer, largely due to the political situation in Russia.
Investors have been unnerved by the debacle at BP’s joint Russian venture TNK-BP, which has seen chief executive Bob Dudley being forced into exile after a campaign of harassment.
It is thought that Russia would be particularly unhappy with a Chinese or Indian firm taking over an oil company with interests in Siberia, especially after its state-owned gas company Gazprom tried unsuccessfully to secure a stake in Imperial last year.
