Caltex Australia to buy 20% equity interest in SEAOIL Philippines

SEAOIL Philippines Inc. has signed a definitive agreement forging a strategic partnership with Caltex Australia Petroleum Pty Ltd. to enhance and spur growth as an independent oil player.

“The Australian company will acquire a 20 percent equity interest in SEAOIL in what is intended to be a long-term partnership between the two independent players,” SEAOIL said on Thursday.

“We have long sought for a strategic partner to complement our capabilities and competitive advantage, and we are optimistic that Caltex Australia, whose values we share and whose operations is like ours in complexity, can help accelerate our growth,” SEAOIL chairman and founder Francis Yu said.

Listed on the Australian Stock Exchange (ASX), Caltex Australia’s network encompasses 76 depots, 12 terminals, nine airport jet fuel sites, five major and bunker pipelines,  and over 1,900 retail sites. It does not share any common ownership with the local Caltex brand owned by Chevron Philippines Inc.

“The new strategic partnership will see Caltex Australia support SEAOIL’s current growth strategy, which aims to double the Company’s retail network and terminal storage capacity over the next five years,” SEAOIL said.

The deal calls for Caltex Australia to supply SEAOIL with fuel via Ampol, its fuel sourcing and shipping business in Singapore.

“This partnership will also mean exciting times for our employees, our franchisees, distributors and customers as we leverage our partner’s scale and expertise to provide high quality, affordable and accessible fuels and lubricants to the fast-growing Philippine market,” Yu said.

SEAOIL has a 6-percent market share in the Philippines, supplying an estimated 1.5 billion liters annually. It also imports fuel from select refineries in Japan, South Korea, and Singapore.

The company tapped J.P Morgan as sole financial advisor for the transaction.

Caltex Australia CEO Julian Segal considers the deal an exciting growth opportunity and testament to the wealth of skills and capabilities his company developed over many years as an independent oil supplier in the Asia Pacific Region. — VDS, GMA News