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Bangkok Post
Bangkok Post
Business

Bangchak acquires most of Esso Thailand

Executives of Bangchak Corporation plc and ExxonMobil pose for pictures when they sign an agreement on the acquisition in Bangkok on Wednesday. From left, they are BCP senior executive vice president Bundit Hansapaiboon, BCP CEO and president Chaiwat Kovavisarach, ExxonMobil M&A manager John Colling and Ong Hoon, director of ExxonMobil Asia Holdings. (Photo: Bangchak Corporation)

SET-listed Bangchak Corporation Plc (BCP) has acquired a 65.99% stake worth 55 billion baht in Esso Thailand mainly from ExxonMobil Asia Holdings Pte.

Energy conglomerate BCP informed the Stock Exchange of Thailand (SET) on Thursday that its board of directors on Wednesday unanimously approved the acquisition. 

The total deal worth 55.5 billion baht, including share purchase from Esso Asia at 33.31 billion baht and the rest, is the tender offer.

BCP chief executive officer and president Chaiwat Kovavisarach said BCP entered into the share purchase agreement with ExxonMobil on the same day when the board made the acquisition decision.

The transaction was expected be completed in the second half of this year, and the company would subsequently launch a tender offer for the remaining ordinary shares from stockholders after the completion of the transaction, he said.

“I believe this transformational transaction marks the beginning of a new chapter for BCP and for Thailand.” said Mr Chaiwat.

The transaction will entail a 174,000 barrel-per-day (BPD) refinery complex, a network of distribution terminals, and over 700 service stations.

If the transaction is completed, the capacity of BCP will rise to 294,000 BPD from 120,000 BPD. The company's network of petrol stations will double to 2,100 units from 1,030 units as of last December.

The transaction is fully funded with a secured bank loan and Bangchak's cash on hand.

ExxonMobil will retain the finished lubricant and chemical marketing businesses.

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