CAO ( Report from UOB Kay Hian)

CAO - Trading in the shares of China Aviation Oil (Singapore) Corp is set to resume on Wednesday, March 29, the company said in a statement. The resumption comes after completion of the issuance of new shares to new shareholders including BP Plc, Temasek unit Aranda and CAO creditors under a restructuring plan aimed at reviving CAO. CAO shocked the market in late 2004 after saying it had incurred 550 mln usd in derivatives trading losses. CAO's trading on the Singapore Exchange has been suspended since the disclosure which sent the jet fuel supplier into near collapse. It last traded on Nov 26, 2004 at 0.965 sgd per share. Following the issuance of new shares, BP will hold a 20 pct stake in CAO, Aranda will have 4.65 pct, the creditors will hold a 10 pct stake and CAO parent China Aviation Oil Holding Co will hold 50.88 pct. The minority shareholders will hold the remaining 14.47 pct stake in CAO. Last week, the company's former CEO Chen Jiulin was sentenced to four years and three months in jail for his role in Singapore's biggest financial scandal in a decade. Chen, a Chinese national, was also fined 335,000 sgd by a district court. "The accused clearly played a principal role and played a more culpable role than any of his other accomplices," judge Wong Keen Onn said.