SINOPEC SSC (01033.HK) announced on September 2 that its wholly-owned subsidiary, along with the subsidiary's Mexican arm, plans to acquire a 50% equity interest in Mexico's DS company from DIAVAZ for $4 million. The deal also includes the purchase of a 0.01% interest in the EBANO project held by D&S under the勘探开发合同 (Exploration and Development Contract).
Upon completion of this acquisition, the wholly-owned subsidiary and its Mexican unit will hold 99% and 1% stakes in the Mexican DS company respectively, indirectly gaining a 55% interest in the EBANO project. Consequently, the Mexican DS company will be consolidated into the group's financial statements.
The acquisition price was determined through negotiations, referencing an appraised value of 77.726 million yuan as of December 31, 2025, the valuation base date, and was set at $4 million. Following the transaction, the subsidiary will provide additional investments totaling no more than $212 million to the EBANO project.
The board of directors approved this transaction on August 17, 2026, and it has received approval from the state-owned assets supervisory authority. However, several conditions precedent remain, including amending the articles of association of the Mexican DS company, obtaining approvals from domestic and foreign government authorities, securing written consent from Mexico's national oil company and bank creditors, and gaining shareholder approval. The planned subsequent investments are contingent upon the closing of this acquisition.
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