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14 WORLD BUSINESS THURSDAY JULY 26, 2018 • THEEDGE FINANCIAL DAILY

CNPC vows big spending South Korea’s Hyundai
IN BRIEF

to boost O&G production Motor replaces China
head amid weak recovery
SEOUL: South Korea’s Hyundai
Motor Co yesterday said it had
replaced the head of its oper-
ation in China after less than
one year, to accelerate recovery
in its biggest market. Hyun-
dai named Yoon Mong-hyun,
It aims to offset falling output from ageing fields in north-east China head of its Turkey operations,

as president of its Chinese joint
venture with BAIC Motor Corp

BY JOSEPHINE MASON & JUDY HUA million tonnes of oil equivalent be- rim in the region, one of China’s jing’s shift away from coal. Ltd. The venture’s current head,
tween 2018 and 2020, CNPC said. largest gas basins, according to Beijing also wants to increase Tao Hung Tan, who only started

BEIJING: China National Petrole- The investment is equivalent to PetroChina’s 2017 annual report. development in the unruly Xinjiang the role in September, will sup-

um Corp (CNPC) said yesterday it the total expenditure by CNPC’s Based on these figures, the new region, which borders Central Asia, port the Chinese business from
would spend more than 150 billion listed unit PetroChina, China’s top investment would boost output from where hundreds have died in eth- the automaker’s Seoul head-
yuan by 2020 to boost oil and gas O&G producer, for O&G exploration the region by at least 75% by 2020. nic unrest in recent years. quarters, the company said in a

(O&G) production in the western and production in 2017. The spending spree underscores “I think that the primary factor statement. Affi liate Kia Motors
region of Xinjiang, aiming to off set CNPC’s Xinjiang operations the need to replace output from the is to support the central govern- Corp also named Jin Byung-
falling output from ageing fi elds in churned out 11.45 million tonnes Daqing oilfield in the north-eastern ment policy to invest more and jin as head of its Chinese joint

north-east China. of crude oil last year, while the com- province of Heilongjiang as well as support economic development in venture with Dongfeng Motor
The increased spending will pany produced 23.5 billion cubic a push to increase the country’s the west,” said Liutong Zhang, a di- Group Co Ltd. — Reuters
push output in the Xinjiang Au- metres of gas, equivalent to 17.1 natural gas output to meet growing rector of Hong Kong-based Water-
tonomous Region to more than 50 million tonnes of gas, from the Ta- demand for the fuel as part of Bei- Rock Energy Economics. — Reuters Tsinghua Unigroup to
buy France’s Linxens
for €2.2b — sources
HONG KONG: China’s top state
Fosun said chip manufacturer Tsinghua
Unigroup Ltd has signed a deal
considering to acquire French smart chip
component maker Linxens for
takeover of about €2.2 billion (RM10.4 bil-
lion), five people with direct
insurer Ageas knowledge of the matter said.
Tsinghua’s acquisition of Linx-
ens from private-equity group
BY RUTH DAVID CVC is still pending regulatory
& JING YANG DE MOREL clearance, three of the sources
told Reuters, saying regulators in
LONDON/SHANGHAI: Fosun France, Germany and the com-
International Ltd, the Chinese pany’s union need to approve
group backed by billionaire Guo the deal. Tsinghua and Linxens
Guangchang, is considering an did not respond to requests for

offer for all or parts of Belgian comment. — Reuters
insurer Ageas in what could be
its boldest move to expand its Korean builder plunges
international footprint, people 30% after collapse
familiar with the matter said. of Laos dam
Shanghai-based Fosun is talk- SINGAPORE: Th e construction
ing to advisers about alternatives firm at the centre of a US$1
including teaming up with a part- billion (RM4.06 billion) hydro-
ner to split the Brussels-based power plant in Laos was feel-
company or increasing its current ing the heat after the collapse
stake, the people said, asking not of a dam in the project left 20
to be identified because the de- dead and hundreds missing.

liberations are private. No fi nal SK Engineering & Construc-
decisions have been made and OVERSEAS HALAL HUB ... (From left) Division of Naga City Region V in the Philippines Department of Education CESO tion Co Ltd plunged as much
Fosun may decide against pur- VI Schools Division superintendent Dr William E Gando, Global Market eCommerce Sdn Bhd (GMeC) executive chairman Mohamed as 30% in South Korea’s over-
suing a deal, they said. Hazli Mohamed Hussain, mayor of Naga City in the Philippines John G Bongat, Euro Jasmine Holding Sdn Bhd chairman Datuk Seri the-counter market, the most
Shares in Ageas jumped Mohd Rizal Mohd Yusof and GMeC director Datuk Seri Muhamad Khanafi Husin. Dagang NeXchange Bhd (DNeX), through its wholly- since it began trading in Au-

4.5% yesterday, giving the com- owned subsidiary GMeC, has launched its GoHalal platform in Manila, the Philippines. This is a key initiative after an agreement gust 2014, according to data
pany a market value of €9.26 signed last month between the company, the local government of Naga City, and the department of education division of Naga City. compiled by Bloomberg. Th e
billion (RM44 billion). Under the agreement, DNeX will be given the opportunity to implement overall initiatives for a halal hub in the Philippines, including shares fell 26% to 26,600 won
Fosun has continued to ex- the development of a blueprint, systems and framework for the halal hub. (RM96) as of 11.57am in Seoul
pand its international business yesterday. — Bloomberg
empire amid a Chinese crack-
down on overseas deals in cer-
tain industries that has forced

other conglomerates like An- China Tower offering sends the right signals
bang Insurance Group Co Ltd
to shed assets. This year, Fosun

announced deals for Brazilian BY ALEC MACFARLANE tal, but many such deals in recent in August as anchor investors are respected institutional outfi ts in-
brokerage Guide Investimen- years have been cosy aff airs. Th e typically locked up for six months, cluding Chinese investment fi rm
tos and French fashion house HONG KONG: China Tower’s ini- last jumbo IPO of an SOE was in meaning limited shares are avail- Hillhouse Capital and US hedge

Lanvin.— Bloomberg tial public offering (IPO) is sending 2016 when Postal Savings Bank able for trading if they buy most fund Och-Ziff .
the right signals. Th e mobile-mast of China raised over US$7 billion; of the stock. The next key test will be how
giant has set a fair price range for its nearly 80% was pre-ordered by a Meanwhile, the price range val- it fares in secondary trading. Five
Fosun, back Hong Kong IPO, which could raise hodgepodge of other state-backed ues China Tower at 6.5 to 7.3 times Hong Kong IPOs in 2016 worth
by Guo, is nearly US$9 billion (RM36.54 bil- firms including a port operator estimated 2019 earnings before more than US$1 billion that sold

talking to lion). It has also limited the amount and a shipbuilder. This tactic has interest, taxes, depreciation and most of their stock on offer to SOE-

advisers about of stock sold to so-called corner- been key to getting deals done at amortisation, according to Th om- heavy cornerstone books have since
alternatives. stone investors, attracting more expensive valuations unappealing son Reuters publication IFR. Th at fallen an average of 11% from their
Photo by than just friends and family. Th at is to global investors. looks inexpensive compared to issue price, with most underper-

Reuters a refreshing change from the usual That is why the latest off ering India’s Bharti Infratel and Indone- forming being the Hang Seng In-
way Chinese state-owned entities stands out from the crowd. Cor- sia’s Tower Bersama, which trade dex. A strong performance by China
(SOEs) are dumped in Hong Kong. nerstones have only been allotted at 7.6 and 10 times respectively. Tower could convince others of the

The city is a go-to venue for Bei- 16% of the off er. This should help Reasonable pricing will have helped merits of this friendlier approach.

jing’s giants to raise foreign capi- liquidity when the company debuts the cornerstone roster to attract — Reuters