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Deal closed for Bangchak Corporation Plc. (BCP) in acquisition Esso Thailand Public Company Limited (ESSO) All processes will be completed by the end of 2023.
Bangchak’s deal to buy Esso shares began earlier this year. After news spread during the New Year’s holiday that Bangchak was preparing to present this matter to the company’s board of directors in early January.
Later on January 11, 2023, the Bangchak Executive Board Meeting resolved to approve and sign a share purchase agreement of Esso Thailand from ExxonMobil Asia Holdings Pte. Ltd. in the amount of 2,283,750,000 shares or 65.99% of the issued and sold ordinary shares. then all
The final conclusion of this acquisition deal Bangchak will spend more than 22.6 billion baht to acquire Esso shares at an average price of 9.8986 baht per share from the previously estimated enterprise value of Esso of 55.5 billion baht. with Esso on August 31, 2023
As for the next step, Bangchak will set up a buying table. (Tender offer) 34% of Esso shares from retail investors at the same price, which will take place between September 8th and October 12th, if included in this section. Equally, Bangchak will spend around 3.4-3.5 billion baht (100% in the retail case) to buy Esso shares.
Recently, Bangchak has requested a loan from Bangkok Bank. The total amount not exceeding 32 billion baht is divided into the amount for the purchase of Esso shares from ExxonMobil Asia Holding Pte. Ltd. and the amount for making a tender offer for the remaining shares of Esso from minority shareholders. and will use a certain amount of the Company’s own funding sources to enter into this share purchase transaction.
At the end of the second quarter, Bangchak’s cash (single budget) was about 18 billion baht. If it can make a tender offer for all 100%, the debt to equity (D/E) ratio should be around 1.3 times. Not yet. Exceeding the specified ceiling twice.
What Bangchak will gain after this acquisition of Esso There are related assets. oil refinery which has a refining capacity of 174,000 barrels per day depot network and more than 700 gas stations across the country, enabling economies of scale and improving the company’s cost efficiency.
In addition, Bangchak will increase its refining capacity to 294,000 barrels per day. making it the largest refinery in Thailand and has a total network of 2,150 service stations or 7.4% of the total number of service stations
It is estimated that the Bangchak deal takes over this Esso business. will be able to pay back the capital to Bangchak within 4-5 years and will create synergy to happen by 2-3 billion baht per year as well
Including this deal, there will be more free gifts for Bangchak. It is a special profit from the land value of over 800 rai that will be recognized as a profit in the third quarter, estimated to be at 5,000-10,000 million baht.
After becoming the full owner Bangchak will gradually rebrand all Esso gas stations to Bangchak gas stations within two years.
Esso gas stations have been with Thai society for a long time.Beginning in 1894, Standard Oil Company of New York has opened the first branch in Thailand at Captain Bush Alley (Soi Charoen Krung 30 at present) doing business selling kerosene. chicken brand and eagle
later joined the company Vacuum Oil Establish a company Socony Vacuum Corporation to sell lubricants before going into a joint venture with Standard Oil (New Jersey) and changing the company name to Standard Vacuum Oil Co., Ltd.
Then, in 1965, the name was changed to Esso Standard Thailand Company Limited.Thai Asphalt Co., Ltd. to set up an oil refinery Esso Sriracha And later in the year 1976, the second refinery was expanded to increase production capacity to 46,000 barrels per day.
along with setEsso Exploration and Production Korat Inc. In 1979, he received a concession for exploration and drilling for energy on the Korat Plateau. and found natural gas at Lum Nam Phong, Khon Kaen Province
Closing of the Bangchak deal to buy Esso shares this time Therefore, it is equal to closing the legend of the Tiger brand gas station that has been in Thailand for 129 years.
2023-09-03 01:33:53
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