China Petroleum & Chemical Corp. (Sinopec), China's largest oil refinery, announced on Wednesday that it will buy back its four listed subsidiaries at a cash offer of 14.3 billion yuan (1.78 billion U.S. dollars).

The four are Sinopec Qilu Petrochemical Co., Sinopec Yangzi Petrochemical Co., Sinopec Zhongyuan Petroleum Co., and Sinopec Shengli Oil Field Dynamic Group Co..

Sinopec offers shareholders of Qilu, Yangzi, Zhongyuan and Shengli 10.18 yuan, 13.95 yuan, 12.12 yuan and 10.30 yuan per share, respectively, higher than the companies' closing prices when they were delisted from the domestic A-share market one week ago, it said in a press release.

A board meeting earlier on Wednesday approved the deal, Sinopec said.

The consolidation efforts would help Sinopec "strengthen unified management and give full play the coordinated effects from strategic decision-making, fund use, investment management and marketing," it said.

Meanwhile, the privatization will eliminate affiliated businesses and vicious internal competition among Sinopec and its units, and the shareholders of the four subsidiaries will have a chance to sell their shares at reasonable prices.

The Sinopec statement said Qilu and Yangzi would take advantage of its raw materials supplies and marketing systems, while Zhongyuan and Shengli would benefit from its technical advantages and exploration resources.

Source: Xinhua