Bangchak takes over Esso Thailand, both refineries and gas stations, worth 55,000 million baht.

Bangchak Corporation Public Company Limited (“Bangchak”) has informed the Stock Exchange of Thailand that The Company’s Board of Directors’ Meeting No. 1/2023 held on January 11, 2023 resolved unanimously to approve the transaction and propose to the Annual General Meeting of Shareholders to consider and approve the purchase of ordinary shares of Esso ( Thailand) Public Company Limited (“Esso”) from ExxonMobil Asia Holdings Pte. Ltd. (“ExxonMobil”)

Bangchak signed a share purchase agreement with ExxonMobil on January 11, 2023 and is expected to complete the transaction and pay for the shares to the seller within the second half of 2023.

The conditions precedent must be complied with. and is preparing to make a tender offer for the remaining shares of Esso upon completion of the transaction with ExxonMobil.

Mr. Chaiwat Kovavisarach, Bangchak Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, said, “This investment This is another important step towards greater energy security for Bangchak and Thailand.

It is an investment that aligns with the strategy of increasing sustainability and increasing accessibility to energy. I am confident that this transaction It is considered a transformation into a new context for Bangchak. and Thailand

The investment involved an oil refinery with a capacity of 174,000 barrels per day. depot network and more than 700 gas stations across the country, resulting in scale savings and cost optimization for the company.

which will make Bangchak It has a total refining capacity of 294,000 barrels per day. and a network of more than 2,100 service stations to enable a more complete refinery business Wider supply of crude oil and benefit from the complementary distillation technologies of the two refineries.

Providing comprehensive marketing services and offering more services to customers through gas stations across the country, as well as exchanging knowledge and technology. Enhance the skills and abilities of employees. Strengthen your business and contribute to delivering the best customer experience.

It also prepares the Bangchak Group to move towards the energy transition.

entering into such transactions It is an acquisition of 65.99% of Esso’s total shares from ExxonMobil with an enterprise value of 55,500 million baht and has a mechanism to adjust the share purchase price as specified in the share purchase agreement. Esso’s 3rd quarter of 2022 will get an initial price of about 8.84 baht per 1 share.

The final price will be adjusted according to the agreed conditions. As for funding sources, Bangchak will use funds from both external sources from financial institutions. and from internal cash flow and is prepared to make a tender offer for the remaining shares after the acquisition of ExxonMobil is completed. ExxonMobil will continue to operate as an importer of lubricants and chemicals in Thailand.

In this regard, entering into a share purchase transaction will be subject to compliance with the rules of relevant regulatory agencies such as the Ministry of Energy. Securities and Exchange Commission and is subject to shareholders’ approval at the 2023 Annual General Meeting of Shareholders. The transaction is expected to complete in the second half of 2023.

source : Esso, Prachachat Business