Philippines: Petron Corp Agrees 40% Stake Sales With Ashmore
|
|
|
|
Tuesday, 09 December 2008 |
|
The Philippine government is set to end its 35-year oil refining
business, after Finance Secretary Margarito Teves said that the Ashmore
Group has agreed to buy the state’s 40-percent interest, equivalent to
3.75 billion shares, for P25.7 billion at P6.86 per share.
He said the government expects to close the transaction before the
year ends to help trim the budget deficit. “Hopefully proceeds
will be available on or before December 30,” he said. The official said
that proceeds from the sale would help manage this year’s deficit to
less than P75 billion.
Petron is the Philippines’ largest oil refiner, which has a near 40
percent control of the country’s fuel requirements. Petron also has
1,280 retail stations nationwide. Excluding the government’s 40-percent
stake, Ashmore, through its unit SEA Refinery Holdings B.V., held a
50.75 percent interest in Petron after buying out Saudi Aramco’s 40
percent shareholding and completing a mandatory tender offer to
minority shareholders.
Besides Ashmore, the Gokongwei Group, PTT of Thailand, and the
Gaisanos of Cebu had expressed interest in government’s shares in
Petron. But by virtue of its acquisition of Aramco’s block,
Ashmore held a right of first offer over the government’s plan to
divest its ownership in the oil company.
In the first nine months of this year, the refiner reported a 32
percent drop in net income. The company’s margins contracted as
domestic prices of refined products fell much faster than its crude
costs. With the continuing drop in crude prices, the company expects to
post a net loss in the fourth quarter.
PetrolWorld 081208
|
