Ashmore given deadline on Petron option

London-based investment fund Ashmore Group has until next month to decide whether or not to acquire the remaining 40 percent government stake in Petron Corp., a top official of the oil refiner said.

 As the single biggest shareholder in Petron with an ownership stake of 50.57 percent, Ashmore has the first crack at the shares to be auctioned off by the state-owned Philippine National Oil Corp. (PNOC) in the country’s largest oil firm.

“Ashmore has until November to decide whether or not to exercise its right of first refusal. So we would be deciding before that time. We have received a notice from the PNOC, informing us at what price they would like to sell but it’s up to the PNOC to tell you that,” said former Trade and Industry Minister Roberto V. Ongpin, who now sits on Petron’s board as a representative of the Ashmore Group.

Ongpin was instrumental in orchestrating the deal that allowed Ashmore to buy Saudi Aramco’s 40 percent stake in Petron for $550 million last March. Ashmore acquired an additional 10.57 percent stake in Petron after buying out minority shareholders in compliance with the tender offer rules of the Securities and Exchange Commission.

Petron operates a 180,000 barrel a day refinery and supplies nearly 40 percent of the country’s oil requirements. It also has more than 1,250 service stations, the largest network in the Philippines.

Ongpin said should Ashmore decide not to exercise its right of first refusal, the company still remains the largest shareholder of Petron. “If at the end of the day they (Ashmore) don’t want to buy it, they still own 50.57 percent. We’re still assured of control of the company. I’m not at all inferring that Ashmore will not buy the additional 40 percent. And if I were another party that was interested in the 40 percent, I’d have second thoughts because that’s all I can own. Whereas I know Ashmore already has 50.5 percent so you can never control the board if you buy the 40 percent,” he said.

Nevertheless, he said Ashmore might be open to selling its shares in Petron if the price is right. “If somebody offers a good price, why not?” he said.

Among those that have signified interest to acquire the government’s shares in Petron are the Gokongweis’ JG Summit Group and Southeast Asia’s largest food and beverage conglomerate San Miguel Corp.

Ongpin pointed out that Ashmore has been a long-time investor in the Philippines with holdings in telecommunications (ISM Communications), oil exploration (Philex Petroleum Corp.) and water (Maynilad Water Services).

He stressed Ashmore remains bullish on the prospects of the Philippine economy despite of the global financial turmoil.

Ashmore was started in 1992 as part of the Australia and New Zealand Banking Group. In 1999, it became independent and today manages about $32 billion in pooled funds,segregated accounts and structured products.