Philippine oil refiner acquires ExxonMobil units in Malaysia for $577 million

Windsor Genova – AHN News News Writer

Manila, Philippines (AHN) – Philippine oil refiner Petron Corp. announced Monday that its oil and gas exploration unit in Malaysia has completed the $ 577.3 million acquisition of three ExxonMobil firms in the southeast Asian neighbor.

The company’s disclosure to the Philippine Stock Exchange indicated that Petron Oil & Gas International Sdn Bhd (POGI) took over 65 percent of publicly-listed Esso Malaysia Berhad EMB. The EMB stake consists of 175 million common shares from ExxonMobil International Holdings Inc. worth $ 195 million. POGI offered to buy the remaining 35 percent of the company at $ 1.17 per share.

POGI also completed acquiring 100 percent of ExxonMobil Malaysia Sdn Bhd and 100 percent of ExxonMobil Borneo Sdn Bhd, both wholly-owned subsidiaries of ExxonMobil.

The acquisition deal was sealed in August by Petron Corp.’s parent company, San Miguel Corp. (SMC), and ExxonMobil at an original price of $ 610 million. The sale includes the Port Dickson refinery, which has a capacity of 88,000 barrels a day, seven fuel distribution terminals and 560 branded service stations of which 420 are company-owned.

SMC is investing $ 1.2 billion to upgrade Port Dickson that will allow it use of a wider variety of crudes to make high-value products. The investment will also expand the Esso service stations network in Malaysia.

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