KUALA LUMPUR: San Miguel Corporation has made a surprisingly low offer of RM3.50 per share for a controlling 65% stake in ESSO MALAYSIA BHD [] from its parent ExxonMobil International Holdings Inc. This is only 22 sen above its net asset per share of RM3.28 as at June 30 or 1.06 times of book value.
News about the proposed transaction saw Esso Malaysia's share price surge 61 sen to close at RM4.95 on Wednesday, Aug 17.
However, investors who bought the shares could be in for a disappointment as the offer price was RM1.45 below the last traded price.
San Miguel's acquisition of the 65% or 175.50 million shares would cost the Philippines' brewery giant RM614.25 million (US$206.02 million).
Simultaneously, San Miguel signed an agreement with Mobil International Petroleum Corp to acquire 35.539 million shares in Exxonmobil Malaysia Sdn Bhd, or a 100% stake.
It also signed an agreement with ExxonMobil International Holdings to acquire 15.45 million shares of Exxonmobil Borneo Sdn Bhd,or 100% stake, from ExxonMobil International Holdings.
The total cash consideration for the stakes in Exxonmobil Malaysia and Exxonmobil Borneo would be US$403.98 million.
Esso Malaysia told Bursa Malaysia it had received a copy of a press notice from San Miguel on its proposed acquisition of the 65% stake.
'As San Miguel's holding of the voting shares of Esso Malaysia will increase from nil to 65% upon completion of the proposed acquisition, San Miguel will be required to extend a mandatory take-over offer to the remaining shareholders of Esso Malaysia in accordance with the Malaysian Code on Take-Overs and Mergers 2010. Completion of the proposed acquisition is subject to the fulfilment of certain conditions precedent,' it said.
San Miguel said the proposed acquisitions would provide it with a unique opportunity to extend its portfolio of oil reifining and marketing businesses outside the Philippines.
'San Miguel envisions considerable potential and benefit in upgrading the existing refinery operations of Esso Malaysia to value-added product segments weighted to better margins.
'With 560 retail stations in Malaysia, the companies to be acquired are also expected to continue to deliver steady earnings in a stable bu growing market,' it said.
News about the proposed transaction saw Esso Malaysia's share price surge 61 sen to close at RM4.95 on Wednesday, Aug 17.
However, investors who bought the shares could be in for a disappointment as the offer price was RM1.45 below the last traded price.
San Miguel's acquisition of the 65% or 175.50 million shares would cost the Philippines' brewery giant RM614.25 million (US$206.02 million).
Simultaneously, San Miguel signed an agreement with Mobil International Petroleum Corp to acquire 35.539 million shares in Exxonmobil Malaysia Sdn Bhd, or a 100% stake.
It also signed an agreement with ExxonMobil International Holdings to acquire 15.45 million shares of Exxonmobil Borneo Sdn Bhd,or 100% stake, from ExxonMobil International Holdings.
The total cash consideration for the stakes in Exxonmobil Malaysia and Exxonmobil Borneo would be US$403.98 million.
Esso Malaysia told Bursa Malaysia it had received a copy of a press notice from San Miguel on its proposed acquisition of the 65% stake.
'As San Miguel's holding of the voting shares of Esso Malaysia will increase from nil to 65% upon completion of the proposed acquisition, San Miguel will be required to extend a mandatory take-over offer to the remaining shareholders of Esso Malaysia in accordance with the Malaysian Code on Take-Overs and Mergers 2010. Completion of the proposed acquisition is subject to the fulfilment of certain conditions precedent,' it said.
San Miguel said the proposed acquisitions would provide it with a unique opportunity to extend its portfolio of oil reifining and marketing businesses outside the Philippines.
'San Miguel envisions considerable potential and benefit in upgrading the existing refinery operations of Esso Malaysia to value-added product segments weighted to better margins.
'With 560 retail stations in Malaysia, the companies to be acquired are also expected to continue to deliver steady earnings in a stable bu growing market,' it said.
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