Commodity Online
Sinopec Shanghai Petro-Chemical Co. Ltd. or SIPC (SHA:600688) has announced that it has agreed to buy Swiss explorer Addax Petroleum Corp. (TSE:AXC) for CAD$8.3 billion in cash to tap oil reserves in Iraq’s Kurdish region and Africa.
Sinopec Shanghai Petro-Chemical Co. Ltd. is a China-based petrochemical company.
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Sinopec placed a CAD$52.8/share in cash offer to Geneva-based Addax which is 47% more than the latter’s closing market price in Toronto on 5th June 2009.
Notably, Addax gained 16% and stood at 2,740 pence at London Stock Exchange after the deal announcement.
Sinopec gained 2.29% at Shanghai Stock Exchange and closed at 8.47 on Tuesday. It touched a 52-week high of 8.87 and low of 3.58.
