The Philippine National Oil Co. (PNOC) has signed a share purchase agreement last Dec. 19, selling the National Government’s remaining 40-percent stake or 3.755 billion shares in Petron Corp. to SEA Refinery Corp.
The Development Bank of the Philippines (DBP) is the financial advisor to the PNOC-Petron privatization deal.
SEA Refinery acquires the government stake in Petron for P6.85 per share or 34 percent premium over Petron’s closing price of P5.10 last Dec. 18.
According to the DBP, the full privatization of Petron is seen as a testament to continued investor confidence in the country despite the worsening global financial crisis.
“The deal is also a testament to SEA Refinery’s long- term commitment to Petron despite the latter’s disclosure of a P2-billion net loss this year due to declining global crude oil prices,” it said.
The National Government expects to receive payment of P25.7 billion before the end of the year, well ahead of the allowable 60-day payment period under PNOC and SEA Refinery’s shareholders agreement. The deal comes at an opportune time as the National Government intends to use the proceeds of the sale for various pump-priming activities starting next year.
SEA Refinery is a wholly-owned subsidiary of SEA Refinery Holdings, BV, the wholly-owned arm of London-based Ashmore Investments which had earlier acquired Saudi Aramco’s 40-percent equity stake in Petron and an additional 10.57-percent stake through a tender offer conducted in July this year.