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Tuesday, November 19, 2013

Exxon to sell Hong Kong power operations for $3.4 bln, (NYSE: XOM)

Exxon Mobil Corp has agreed to sell its 60 percent stake in a Hong Kong utility and a power storage firm for a combined $3.4 billion, helping the U.S. oil major raise funds to plough back into its core operations.Many integrated global oil companies have struggled to boost production, spending heavily on new projects in recent years. In the first nine months of this year, Exxon, the world's biggest oil firm by market value, spent $33 billion.They are also keen to put cash in the pockets of investors through asset sales, share buybacks or dividends as analysts grumble about lagging stock prices.Under the deal, CLP Holdings will assume control of Castle Peak Co Ltd, one of Hong Kong's two electricity providers, lifting its stake to 70 percent by buying half of Exxon's holding for HK$12 billion ($1.6 billion). CLP also plans to purchase Exxon's 51 percent stake in Hong Kong Pumped Storage Development Co for HK$2 billion.

Exxon Mobil Corporation (Exxon Mobil) is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. Shares of XOM remained unchanged at $95.45. In the past year, the shares have traded as low as $84.70 and as high as $96.00. On average, 12683500 shares of XOM exchange hands on a given day and today's volume is recorded at 100.