Speculation about who will take over the company's 65 percent equity stake in ESSO Malaysia Bhd from ExxonMobil International Holdings Inc (EMIH) answered when the Philippine conglomerate, San Miguel Corp. emerged as the buyer.
Company based in Mandaluyong City, Metro Manila on Tuesday to complete the sale purchase agreement (SPA) with EMIH to acquire a stake at U.S. $ 206,020 million (RM614.25 million), or RM3.50 per share.
Price was 29 percent lower than current prices which Esso Malaysia in the final session of trading on Bursa Malaysia yesterday, the shares jumped 14.1 percent, or 61 cents to close at RM4.95 per share. Based on current share price of Esso Malaysia, 65 per cent stake sale should be at a price of about RM760 million. However, to understand the main factors EMIH release the 65 percent equity stake to San Miguel at lower prices following the Philippine company's willingness to make additional investments in Malaysia Esso oil refinery facility in Port Dickson, Negeri Sembilan at the time future. The facility now produces a variety of products including petrol, diesel, liquefied petroleum gas (LPG), jet fuel, kerosene and other petroleum-based materials. Currently, the Philippine conglomerate engaged in the businesses of energy, telecommunications, infrastructure and production alcoholic beverages. It also has a marketing company and the largest oil refinery in the Philippines through a 68 percent share in Petron Corporation. Esso Malaysia said in a statement to Bursa Malaysia yesterday said the equity sale would provide a unique opportunity for San Miguel to expand portfolio of oil refining and marketing business , outside the Philippines. "San Miguel is also in the best track and has the potential to benefit the operations of the existing oil refinery Esso Malaysia already be upgraded to a segment of value-added products. "With 560 retail stations in Malaysia, Esso Malaysia expected to continue to provide stable income in emerging markets, "he said. EMIH appoint Maybank Investment Banking (Maybank-IB) as an advisor to carry out the sale. Simultaneous offer, San Miguel also recommends to the Mobil International Petroleum Corp. and EMIH to acquire ExxonMobil Malaysia Sdn Bhd and Exxon-Mobil Borneo Sdn Bhd involve a total of U.S. $ 403,979 million (RM1.2 billion). SPA entered into San Miguel and EMIH, however, depends on several conditions, including approval from the government.