Guangdong Zhenrong Energy has proposed to invest in Titan Petrochemicals Group and its wholly owned subsidiary Titan Group Investment (StorageCo), and on 12 July submitted a non-binding letter of terms relating to this investment.
On 17 July Titan outlined further details on this proposed investment. Specifically, and subject to the conditions and terms set out in the company’s announcement, Guangdong Zhenrong Energy will:
– Invest HK$1,131 million (€120 million) or more to acquire all the interests held by Saturn Storage in StorageCo and SPHL in the company
– As an interim measure, provide financing to StorageCo for working capital purposes in an amount of up to HK$320 million
– Subscribe for new shares representing no less than 51% of the enlarged share capital of the company for HK$150 million to HK$200 million.
Titan’s executive director Patrick Wong Sui Hung says: ‘Guangdong Zhenrong Energy is a substantial and established player in the oil trading, commodities trading and logistics industry. This proposed investment will create a stable platform from which Titan can ride out the current turbulent market conditions and develop its business, for the long-term benefit and in the best interests of all our stakeholders and creditors.’