Gov’t to sell remaining Petron stake

MANILA, Philippines — The government has decided to sell its 40-percent stake in Petron Corp., the country’s biggest oil refiner, and is looking to get about P25 billion ($530 million), the finance secretary said.

London-based Ashmore Group, which owns slightly over 50 percent of the company, has right of first refusal, Margarito Teves told reporters late Tuesday.

“The Privatization Council approved the sale on Tuesday,” he said. “Hopefully, we can book the proceeds by December. Hopefully we can get P25 billion.”

SEA Refinery Holdings BV, owned by Ashmore Investment Management Limited, agreed to buy a 40-percent stake in Petron from Saudi Aramco for $550 million earlier this year.

In June, it offered to buy the remaining 60-percent stake, or 5.63 billion shares, in Petron at P6.531 per share.

Under Philippine corporate laws, an entity buying a 30-percent stake in any company must make a tender offer for the rest of the company.

At the end of the tender offer in July, SEA Refinery received tenders for a total of 990.98 million common shares, or a total of P6.5 billion, from minority shareholders, the company said in a statement to the stock exchange.

At the time, the government did not participate in the tender, saying it was hoping for a better price. Ashmore’s holding in Petron is now at 50.57 percent.

($1 = P47.26)MANILA, Philippines — The government has decided to sell its 40-percent stake in Petron Corp., the country’s biggest oil refiner, and is looking to get about P25 billion ($530 million), the finance secretary said.

London-based Ashmore Group, which owns slightly over 50 percent of the company, has right of first refusal, Margarito Teves told reporters late Tuesday.

“The Privatization Council approved the sale on Tuesday,” he said. “Hopefully, we can book the proceeds by December. Hopefully we can get P25 billion.”

SEA Refinery Holdings BV, owned by Ashmore Investment Management Limited, agreed to buy a 40-percent stake in Petron from Saudi Aramco for $550 million earlier this year.

In June, it offered to buy the remaining 60-percent stake, or 5.63 billion shares, in Petron at P6.531 per share.

Under Philippine corporate laws, an entity buying a 30-percent stake in any company must make a tender offer for the rest of the company.

At the end of the tender offer in July, SEA Refinery received tenders for a total of 990.98 million common shares, or a total of P6.5 billion, from minority shareholders, the company said in a statement to the stock exchange.

At the time, the government did not participate in the tender, saying it was hoping for a better price. Ashmore’s holding in Petron is now at 50.57 percent.

($1 = P47.26)

2 Responses to “Gov’t to sell remaining Petron stake”

  1. Rod J Says:

    Finance Secretary Margarito Teves does not show like he is the best man for the job. Maybe he will do better in some commissary acting as salesman, salesperson, or whatever, other than finance secretary.

    He spoke of selling Petron to tide some deficit. Is he talking about political survival of Malacanang until 2010? If we follow his line of thinking, maybe next time government is facing some financial deficit, it should sell Catanduanes or anything just to survive.

    His proposed idea to sell Petron absolutely has nothing to do with what is good or what is bad for the country, the Philippines, the Filipino people. Wala na siya maisipan pang paraan makalikom ng 25B? Maybe he should surrender his post to others.

    I am not proud of him as my kasimanwa.

  2. What is Rational is Real and What is Real is Rational « RLTJ’s Weblog Says:

    […] I don’t think it was the last of it. And, I don’t think Filipinos have learned. In fact the State is selling its remaining shares in Petron. Bahala na […]


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