UK Duo Advise on $3bn Share Placement of Asia Oil Giant

Herbert Smith Freehills and Freshfields Bruckhaus Deringer have advised on the $3.1bn (￡1.98bn) private share placement of Asia's largest oil and gas company, Hong Kong-listed China Petroleum & Chemical Corp (Sinopec).

The pair advised on both the Hong Kong and US aspects of the deal, which is the largest equity transaction in Asia this year and Sinopec's first major equity offering since its initial public offering in 2000.

According to media reports, the state-owned giant is trying to raise cash to buy $8bn (￡5.1bn) of global upstream oil and gas assets from its parent company, Sinopec Group.

The assets will include projects in the UK, Russia, Colombia and Kazakhstan.

Sinopec has agreed to sell approximately 2.85 billion new shares at a price of HK$8.45 (￡0.70) each.

Herbert Smith represented Sinopec, which has shares listed on the Shanghai, New York and London Stock Exchanges, with a team led by corporate partner Tom Chau in Beijing and a US securities team in Hong Kong overseen by partner Kevin Roy.

Magic circle firm Freshfields acted for Goldman Sachs, the sole global co-ordinator, bookrunner and placing agent for the deal, with capital markets partner and China chair Teresa Ko providing Hong Kong counsel alongside corporate partner Richard Wang in the Chinese capital.

Corporate partner Ken Martin, also based in Hong Kong, advised on US aspects.

Chinese law firm Haiwen provided PRC counsel to Sinopec, while Beijing-headquartered Commerce & Finance Law Offices advised on Chinese law for Goldman Sachs.