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Saturday, January 11, 2014

China's State Grid buys biggest chunk of HK Electric's IPO-sources, (NYSE: XOM)

Government-owned State Grid Corp of China is coming in as the biggest cornerstone investor in a Hong Kong initial public offering (IPO) worth up to $5.7 billion by Li Ka-shing-backed HK Electric Investments, people familiar with the matter told Reuters.Li's Power Assets Holdings Ltd is planning to list its Hong Kong electricity business, HK Electric Investments, as it seeks funds for overseas expansion. The IPO is set to be launched on Monday, they added.China's cashed-up state power groups have been expanding overseas, buying up bargains in the past few years. The dominant power distributor State Grid, which is the largest state utility in the world, has established a presence in the Philippines, Brazil and Portugal among other countries.Last year, state-owned China Southern Power Grid and CLP Holdings Ltd agreed to purchase Exxon Mobil Corp's Hong Kong power business for $3.4 billion.

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. Shares of XOM traded higher by 0.76% or $0.76/share to $100.52. In the past year, the shares have traded as low as $84.79 and as high as $101.74. On average, 12343800 shares of XOM exchange hands on a given day and today's volume is recorded at 10537306.