NEW YORK (TheStreet) -- Shares of China Petroleum & Chemical Corp. (SNP) are down 4.84% to $94.44 in pre-market trade after the company said it will sell a stake in its fuel retailing business for 107 billion yuan ($17.5 billion), a price lower than analysts estimated, Bloomberg Businessweek reports.
Sinopec, as the company is known, said the unit will sell a combined 29.99% stake to 25 investors including Fosun International (FOSUY) , run by billionaire Guo Guangchang. China Life (LFC) will buy 10 billion yuan of shares, while gas supplier ENN Energy Holdings (XNGSY) committed 4 billion yuan, Sinopec said in an exchange filing yesterday.
A fund backed by Tencent Holdings (TCEHY) , Asia's biggest listed Internet company, is investing 10 billion yuan, according to the filing.
TheStreet Ratings team rates CHINA PETROLEUM & CHEM CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA PETROLEUM & CHEM CORP (SNP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."