Bangchak to acquire ExxonMobil’s 66% stake in Esso Thailand
Bangchak Corporation (BCP) said on Thursday that it had signed a deal to acquire the entire stake of ExxonMobil Asia Holdings (ExxonMobil) in Esso Thailand (ETL), marking a new chapter in greater energy security and energy affordability for the country.
In its letter to the Stock Exchange of Thailand, BCP said the company had entered into an agreement with ExxonMobil for the acquisition of 2,283,750,000 ordinary shares of ETL, accounting for 65.99% of total ETL shares, on Wednesday.
“The transaction is expected to be completed in the second half of this year,” BCP said, adding that the company would subsequently launch a tender offer for the remaining ETL shares once the transaction with ExxonMobil was completed.
BCP Group chief executive officer and president, Chaiwat Kovavisarach, said the investment is “a step towards greater energy security, balancing our long-term strategy with energy affordability and sustainability”.
“I believe this transformational transaction marks the beginning of a new chapter for BCP and for Thailand,” he said.
The transaction, which entails a 174 thousand of barrels per day (KBD) complex refinery, a network of distribution terminals, and over 700 service stations, will provide BCP with important catalysts for further growth and margin improvement.
“With a combined nameplate capacity of 294 KBD and a network of 2,100 service stations, the company would not only benefit from a complementary refining portfolio providing fuel supply security and optionality but would also be able to offer more comprehensive customer service through the enlarged footprint of service stations nationwide,” he said.
He added that exchange of knowledge and technology would enhance employees’ skills and capabilities, which would enable the company to deliver the best customer experiences and prepare for a move towards energy transition.