Zhenrong Energy to invest $145.68m into Titan Petrochemicals Group

China's state-owned Guangdong Zhenrong Energy has proposed to invest HK$1.13bn ($145.68m) into cash-strapped Titan Petrochemicals Group and its wholly-owned subsidiary Titan Group Investment Limited (StorageCo), Seatrade Asia online reports.

Zhenrong Energy, an oil and commodity trader, has proposed to acquire all the interests held by Saturn Storage Limited in StorageCo and Saturn Petrochemical Holdings Limited in Titan.

As an interim measure, Zhenrong Energy will provide financing to StorageCo for working capital purposes amounting to HK$320m to lease and manage Titan's oil terminals in Guangzhou, Fujian and Quanzhou.

The trader will also subscribe for new shares representing not less than 51% of the enlarged share capital of Titan for HK$150m to HK$200m.

“This proposed investment will create a stable platform from which Titan can ride-out the current turbulent market conditions and develop its business, for the long term benefit and in the best interests of all out stakeholders and creditors,” said Patrick Wong, executive director of Titan.