PETDAG QUITS LPG BUSINESS IN PHILIPPINES
Company selling Petronas Energy Philippines Inc and 40pc stake in Duta Inc to Phoenix Petroleum Philippines
PETRONAS Dagangan Bhd (PetDag) is quitting the liquefied petroleum gas (LPG) business in the Philippines with the disposal of its entire stake in Petronas Energy Philippines Inc (PEPI) and 40 per cent stake in Duta Inc to Phoenix Petroleum Philippines Inc for US$124.0 million (RM531.9 million).
PetDag said upon the completion of the divestment, PEPI will cease to be its indirect whollyowned subsidiary, while Duta will cease to be its indirect associated company.
“The divestment is part of PetDag ’s regular review of its portfolio of businesses and geographies in which it operates,” the company said in a filing to Bursa Malaysia yesterday.
“The review entails, among others, whether the businesses can benefit from the introduction of new owners, and if monetisation can be undertaken profitably,” it added.
In a statement yesterday, PetDag said the transactions are expected to be completed in the third quarter of this year.
The divestment of PetDag’s 100 per cent stake in PEPI will involve the disposal of 1.09 billion shares of 1 Philippines peso (RM11.7) each and redeemable preferred shares of 1 Philippines peso each for US$120.1 million.
The sale of the 40 per cent stake in Duta, on the other hand, involves 183,000 shares of 100 Philippines peso each in Duta for US$3.9 million.
PetDag said Alsons Consolidated Resources Inc and Masaligan Inc, which collectively hold the remaining 60 per cent equity interest in Duta, will also sell their entire stake.
The disposals of stakes in both the companies are expected to result in a gain of RM369.5 million for PetDag, based on its audited consolidated financial statements for the financial year ended December 31 2016.
The proceeds from the sale are expected to be used for PetDag’s future capital expenditure during the financial year 2018 until 2020.
“The actual breakdown of the expenses and actual timeframe for the full utilisation of the proceeds cannot be determined at this juncture as it would depend on the actual capital requirements of the group at the relevant time,” it said.
PetDag also had in June sold its Vietnam-based unit Thang Long LPG Company Ltd to Noi Thuong Bac JSC, exiting Vietnam market, as part of its portfolio rationalisation.
In 2015, the company also sold another of its Vietnam-based unit, LPG processor and distributor Petronas Vietnam Co Ltd, to Totalgaz Vietnam, a subsidiary of France’s integrated oil and gas giant the Total Group.
PetDag closed six sen lower yesterday at RM24.10.