Bangchak closes a deal to acquire 65.99% ESSO from ExxonMobil and will make a tender offer for the remaining shares. The transaction is expected to be completed within 1 year. will enable Bangchak to become a major shareholder of Esso. occupy the refinery With more than 700 depots and gas stations, it instantly became a major player in the market.
12 Jan. ’23 Bangchak Corporation Public Company Limited or BCP Inform the Stock Exchange of Thailand (SET) that the Board of Directors’ meeting No. 1/2023 held on 11 Jan. 23 has considered and approved the acquisition of shares and made a tender offer for all securities ofEsso (Thailand) Public Company Limited or ESSO by purchasing 2,283.75 million ordinary shares directly, representing 65.99% of all issued and sold shares from the seller, namely ExxonMobil Asia Holding Pte.Ltd.
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. For the third quarter of 2022, Esso will receive an initial price of approximately 8.84 baht per share, with the final price being adjusted according to the terms agreed. For funding sources, Bangchak will use funds from external sources from financial institutions. and from cash flow within the company
It is expected that the purchase and sale of the shares will be made and payment will be made to the seller within the second half of 2023 subject to the conditions precedent specified. and preparing to make a tender offer for all of Esso’s remaining shares following the completion of the transaction with ExxonMobil. 1,177,108,000 shares, or 34.01 percent of Esso’s total issued shares
This takeover of Esso willSynergy from cost optimization Helping to strengthen Bangchak in refinery and oil station businesses Wider supply of crude oil benefit from the complementary distillation technologies of the two distilleries And providing comprehensive marketing services and offering more services to customers through gas stations across the country as well as the opportunity to further expand retail business and create exchange of knowledge and technology. Prepare the Bangchak Group for energy transition.
Bangchak will acquire an oil refinery with a capacity of 174,000 barrels per day. depot network and more than 700 gas stations nationwide
which following the transaction will cause
- Bangchak has2,100 more gas stations
- Its total refining capacity is 294,000 barrels per day.
- haveOil and product warehouses capable of storing 15 million barrels of oil. Helps to increase fuel reserves and energy security. It owns and operates a refinery connected to an offshore crude oil dump. Accommodates Very Large Crude Carreiers: VLCCs provide VLCCs access to two major product pipelines, enhancing operational efficiency from procurement and transportation of crude oil through joint purchase and transport. Maximize benefits with reduced operating costs.
This Share Purchase Transaction does not include the acquisition of the ExxonMobil branded lubricants business and OEM (Original Equipment Manufacturer) (finished lubricants business) and the ExxonMobil branded chemical marketing business (Refined Lubricants Business). chemicals market) by ExxonMobil has stated that ExxonMobil intends to establish a new company to operate in Thailand.
Stock trading transactions are subject to the fulfillment of certain conditions. Including obtaining approval from relevant government agencies such as the Ministry of Energy. Trade and competition committee Securities and Exchange Commission ExxonMobil expects the transaction to be successful in the second half of 2023 and the “ESSO” brand will continue to be used for service stations during the transition period. which has a general term of 2 years
reference information
SET , Bangchak announces share purchase and tender offer for all securities of Esso Thailand