Shareholders have given the green light for Bangchak to take over ESSO from ExxonMobil. The deal is expected to be completed in the third and fourth quarters, which will result in 2,150 pumps in the group, or 7.4% of the market share.
Mr. Chaiwat Kovavisarach, Bangchak Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, said that shareholders approved the Company to buy shares and make a tender offer for all securities of Esso (Thailand). ) Public Company Limited or ESSO, which is an asset acquisition transaction of the Company. To strengthen the Company as a refinery and station operator Thailand's leading oil service
By directly purchasing 2,283.75 million ordinary shares in Esso, representing 65.99% of the total shares sold from the seller, ExxonMobil Asia Holding Ptr. Lte, which Bangchak entered into a share purchase agreement on 11 Jan. 2022. In the past, by adjusting the share purchase price mechanism as specified in the share purchase agreement and making a tender offer for the remaining 1,177.108 million shares, representing 34.01%
The acquisition of ESSO shares enhances the refinery's potential. At present, Bangchak can refine 123,000 barrels per day. which will make Bangchak It has a total refining capacity of 294,000 barrels per day. Able to run a more integrated refinery business Wider supply of crude oil As for service stations, if all conditions are met. There will be a network of more than 2,150 service stations or 7. 4% of market share Which is now left to step A, B, C, which is in accordance with the regulations that take 105 days to consider. If passed, it will be able to trade during the third quarter to the fourth quarter, expecting the price to be at 8-9 baht when the transaction is completed. will make a tender offer for all remaining securities of Esso from other shareholders under the same conditions as those bought from Exxon, which will gradually change to Bangchak gas stations which will use the all new logo which is a good timing that Bangchak will change the logo as well Since the second quarter Onwards, Bangchak gas stations will gradually change their logos and ESSO gas stations will change. It is expected within 3-6 months that up to 80% of ESSO gas stations will be replaced with Bangchak gas stations. Hall 97 will satisfy supercar users. Which is now available for more than a hundred pumps
In addition, shareholders also approved the amount for the issuance and offering of debentures for a period of 5 years (2023 - 2027)
for investment purposes. and/or general working capital and/or to repay existing debts and/or for other purposes related to the business of the Company It is a total amount not exceeding 80,000 million baht for a period of 5 years (2023-2027). However, rising interest rates did not affect much. because Bangchak has fixed interest rates around 80%, leaving only 20% to be affected
As for the energy price trend this year Mr. Chaiwat sees that it is still volatile, good for about 4-5 months, normal 3 months and still has to wait for another 3 months as the nature of the oil business. However, during this Songkran festival, Bangchak will fix oil prices. Do not raise the price of all types of oil.
Source: Thai News Agency