Home » Business » BCP added 3.23%, spreading big deals with ESSO, a broker that looks to Synergy to support and keep tabs on the over 40 billion baht money source.

BCP added 3.23%, spreading big deals with ESSO, a broker that looks to Synergy to support and keep tabs on the over 40 billion baht money source.

BCP’s share price rose in response to news of the closing of the deal to purchase ESSO at a price range of 12-14 baht per board share on January 9. As of 10:04 am, BCP shares were up 3.23% or 1.00. baht to 32.00 baht

While ESSO, the price fell by 1.54% or decreased by 0.20 baht to 12.80 baht.

Mr Jakrapong Chawengsri Senior Director of Kasikorn Securities said the issuance of Bangchak Petroleum Public Company Limited (BCP) will acquire Esso (Thailand) Public Company Limited (ESSO) for a long time. But after asking the BCP, they always denied. and asked again yesterday Still refused as always

However, if true according to the news, it will have a positive effect on BCP in both operational and synergy terms because ESSO is an operational asset that, if purchased, will be able to recognize immediate profits and in terms of synergy, will generate a lot of value. Specifically, the BCP Refinery is a Hydro Craker that produces diesel while the ESSO Refinery is an FCC system that focuses on gasoline. This allows the two refineries to combine their advantages.

Also, the BCP refinery located in Bangkok needs to transport oil from large vessels to small vessels. E had to rent a warehouse in Sriracha to store crude oil waiting to be unloaded. But if ESSO’s warehouse is used, it will be able to save about 500 million baht a year in rent. It is not yet known when it will be recalled. If you use ESSO Refinery in Sriracha, you will reduce this risk.

And in marketing terms, BCP sells oil as refining capacity. And there are no additional sources of refined oil to expand sales, while ESSO carries only half of the retail refinery oil. It can also expand oil retailing. This will help expand BCP’s oil retail sales.

Therefore, BCP’s acquisition of ESSO has great business benefits. Only the expected purchase price is between 12 and 14 baht/share. If ESSO is purchased by EXXONMOBIL ASIA HOLDINGS PTE.LTD, which is a 65.99% majority shareholder, BCP will have to make a tender offer for the remaining shares (Tender Offer). But the capital increase is not expected to be used directly. But there may be a way to find a source of money.

Mr. Chakkaphong believes that BCP should have a good way to find funding. Especially with Mr. Pichai Chunhavajira, former CFO of PTT Public Company Limited (PTT), who sits as chairman of the board of BCP and Mr. Chaiwat Kovalisarach, CEO of Bangchak Group. And the president of BCP is a former Investment Banking (IB).

“This time, I think it’s not normal. It probably has a way, finance believes it has a way. There is Khun Pichai who was CFO PTT, and Khun Chaiwat is an IB hand. The purchase price is 12-14 baht, not a problem. is at an acceptable level.”

As for BCP’s share price, it will go up or down depending on your funding method or your search for a funding source. Prices may go down at first. due to concerns about the capital increase Ma will eventually go up, while ESSO shares may go as high as 14 baht, but still need to wait for clarity from BCP board meeting on January 9, 2023 whether there will be a surprise or not.

By InfoQuest News Agency (30 Dec. ’22)

Tags: BCP extension, IT, Bangchak Society, Thai stocks, It

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