China National Chemical Corporation, or ChemChina, has approached Chinese state-backed traders for as much as $10 billion in funding as part of a reorganization of its agrichemicals business ahead of public entry, according to five people conversant in the situation. The reorganization includes Swiss titan Syngenta.
The fundraising efforts and eventual stock market listing are made to cut ChemChina’s debts ahead of an extended-awaited mega-merger with government-owned peer Sinochem. Frank Ning, the chairperson of both corporations, has inspired individual business models to tap capital markets ahead of any tie-up, which has been in the works since 2016.
Officials from ChemChina and Sinochem have been involved in the approaches to potential traders, according to two of the sources, who’ve direct knowledge of the discussions. They turned to fellow state-owned firms after some international traders neglected the offer as too expensive, the five people said.
Liang Xiaoliang, a corporate communication official at ChemChina, described reporting as ‘false information’. He Yujie, the general manager of Sinochem’s legal division, said there was no factual foundation to the reporting.
ChemChina wishes to list Syngenta, the Swiss pesticide producer it bought for $45 billion back in 2016, on China’s technology-focused STAR market in mid-2020, in response to fundraising documents dated from October.
The documents, sent to potential buyers, still signify the companies’ current plans, based on two of the sources.
A possible listing on STAR, where firm valuations are higher than on the leading Shanghai Stock Exchange, has not previously been reported.