Sinopec takes over 67.5-pct stake in Kingdream

Major Chinese oil company Sinopec Group on Thursday said it has taken over 67.5 percent of the A-shares of drilling equipment maker Kingdream.

Sinopec has agreed for Shenzhen-listed Kingdream Public Limited Company to raise funds through private offering to buy 100 percent of shares Sinopec holds in its Petroleum Engineering Machinery Co., Ltd.

The deal will pave the way for the listing of Petroleum Engineering Machinery Co., Ltd., Sinopec said in a statement on its website.

Kingdream has proposed a profit distribution policy stipulating that no less than 30 percent of annual average distributable profits from the past three years will be paid to investors in cash if the company has no major investment plan.

The injection of engineering machinery assets into Kingdream will make the company Sinopec's center for petroleum equipment manufacturing and technological service.

Previously, Sinopec Group had made Hong Kong-listed Sinopec Yizheng Chemical Fibre Co. Ltd. its sole unit through asset restructuring to carry out business in petroleum engineering contracting and technological service.