The FINANCIAL — PetroChina Company Limited announced on May 24 that PetroChina, through its indirectly wholly owned subsidiary, PetroChina International (Singapore) Pte. Ltd., has entered into a conditional agreement with Keppel Oil and Gas Services Pte Ltd, a wholly owned subsidiary of Keppel Corporation Limited, to acquire its entire shareholding in Singapore Petroleum Company Limited (“SPC”) representing approximately 45.51% of the total issued share capital of SPC (excluding treasury shares) for cash consideration of S$6.25 per share, equivalent to approximately S$1.47 billion (approximately US$1.02 billion) to be paid in full on completion.
If and when the acquisition is completed, subject to Chinese regulatory approvals, PetroChina International (Singapore) Pte. Ltd. intends to make a Mandatory General Offer for the remaining shares of SPC.
"SPC is a regional energy company with interests in petroleum refining and marketing and in oil and gas exploration and production. SPC has a 50% interest in Singapore Refining Company Private Limited, one of the three major petroleum refiners in Singapore. SPC also conducts terminalling and distribution and trading of crude and refined petroleum products," PetroChina informed.
PetroChina said, “After PetroChina International (Singapore) Pte. Ltd. purchases the stake in SPC, SPC will become a new platform for the implementation of our international strategy and will provide a broader foundation and stable path for development.”
Discussing the rationale for Keppel’s sale of its shares in SPC, Mr. Choo Chiau Beng, CEO of Keppel remarked, “Over the last 10 years, Keppel has grown SPC, establishing it as a reliable supplier of quality energy products while diversifying its businesses upstream into exploration and production. This divestment of our stake in SPC would enable Keppel to seize opportunities that would enhance value creation for shareholders.”
PetroChina and Keppel also plan to explore opportunities in the offshore oil industry and in other areas of mutual benefit as such opportunities become available.
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