Hungarian Prime Minister and Finance Minister, together with a delegation of businesspeople went to China to enhance business relationship between the two countries. (26 050 HUF, -0,57%) CEO Mr Gyorgy Mosonyi accompanied the delegation and reportedly held talks with Sinopec in Beijing, MTI learnt on Monday. According to the newswire Mr Gyurcsany as well as Finance Minister Janos Veres and Economy Minister Janos Koka were also present at the talks between and Sinopec.
Our view: The news immediately sparked rumors that aims to offer the same structure to Sinopec what it did for CEZ: sell shares to the Chinese company with a buyback option (and maybe also granting a put option for Sinopec). Since we have significant doubts whether Sinopec would be able to justify such an investment to its owners, we see little chance for an agreement between the two companies.