Warburg Pincus lets go of Chinese partner Petrotitan

摘要

Singapore—US private equity group Warburg Pincus has decided to let go of debt-ridden Titan Petrochemicals (Petrotitan)—its joint venture partner with which it held a number of storage terminals along China’s eastern coast—having agreed to sell its equity in the company to Guangdong Zhenrong, an affiliate of Chinese state-run trader Zhuhai Zhenrong. Warburg invested in Petrotitan in 2007, primarily to help develop storage facilities in China. It held 555 million preferred shares in Petrotitan (7.1% of its total issued share capital) and was Petrotitan’s partner in a number of storage terminals under their joint venture StorageCo. Warburg owned a 50.1% stake in StorageCo with Petrotitan holding the remaining 49.9%. The storage terminals have a capacity of 2.7 million cubic meters or around 17 million barrels.