According to people familiar with the matter, the two sides have started negotiations on the transaction, and the valuation of Varro Energy may reach about 2 billion euros (2.3 billion US dollars), including debt. Varo Energy's investors include Carlyle Group.
People familiar with the matter said that the two sides have not yet reached a final agreement, and the negotiations may not necessarily reach a deal. Because the information is confidential, the insider asked for anonymity.
Reggeborgh, a Dutch private equity investment company, and Vitol Group, the world's largest independent crude oil trader, also hold shares in Varo.
Representatives of Varo, Carlyle, Reggeborgh and Vitol declined to comment. A spokesman for Chow Tai Fook, a listed company owned by the Zheng family, said he could not immediately comment on behalf of the Zheng family. Representatives of the family's flagship listed real estate company, New World Development, did not immediately respond to emails from Bloomberg seeking comment.