PetroChina to make $1.2bn general offer for SPC in 2-3 weeks

22 June 2009 06:03  [Source: ICIS news]

SHANGHAI (ICIS news)--PetroChina is due to make a mandatory Singapore dollar (S$)1.75bn ($1.21bn) general offer for the outstanding 54.49% shares of Singapore Petroleum Corp (SPC) after it completed the first phase of acquisition on Sunday.

The state-owned oil and gas giant said in a statement released to the Shanghai Stock Exchange on Monday that it had completed the acquisition of a 45.51% stake in SPC and would buy the rest at S$6.25 a share in two to three weeks. 

The offer for the remaining shares of SPC was in accordance with the Securities and Futures Act of Singapore, the Chinese major added.

PetroChina had announced in May that it would take up a sizeable investment in the Singapore-listed oil refiner after it had secured approval from its shareholders’ to sell as much as yuan (CNY)100bn ($14.62bn) in bonds to fund exploration, pipeline and overseas projects.

SPC is PetroChina’s first major acquisition of a publicly-listed company in Asia, which would be indirectly held through its wholly owned subsidiary PetroChina International (Singapore) Pte Ltd.

Analysts had previously said it was likely that PetroChina, together with rival Sinopec, would embark on a major acquisition binge across Asia as both state-owned giants seek to expand and upgrade assets through the downturn.

SPC is listed in the Singapore Exchange with interests in petroleum refining and oil and gas exploration and production, and holds a 50% stake in Singapore Refining Company Pte Ltd, which owns a 285,000 bbls/day refinery.

SPC has assets in China, Indonesia, Vietnam, Cambodia and Australia.

($1 = S$1.45/ $1 = CNY6.84)

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By: Dolly Wu
+65 6780 4359

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