Esso slumps on disappointing offer from San Miguel

KUALA LUMPUR: ESSO MALAYSIA BHD [] shares slumped on Thursday, Aug 18 after investors were left disappointed with the RM3.50 per share offer made by San Miguel Corporation to buy a controlling 65% stake in the company from its parent ExxonMobil International Holdings Inc.

This was RM1.45 below the last traded price of RM4.95.

At 9.05am. Esso fell 88 sen to RM4.07 with 2.34 million shares traded.

The acquisition price of RM3.50 was about 1.06 times Esso Malaysia's book value of RM3.28.

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).

Esso redeems RM300m Islamic debt facility

KUALA LUMPUR: RAM Rating Services Bhd has received confirmation that ESSO MALAYSIA BHD [] fully redeemed and cancelled its RM300 million Islamic debt notes on Monday, May 9.

The ratings agency said on Friday, May 13 the debt notes involved were the commercial papers issuance facility programme (2004/2011).

'As such, RAM Ratings no longer has any rating obligation on the debt facility, which had previously carried a short-term rating of P1.

'Meanwhile, RAM Ratings will maintain surveillance on the preliminary P1 rating of Esso's proposed RM300 million Islamic commercial papers issuance programme (2011/2018),' it said.