RP sells Petron stake to SEA Refinery

MANILA, Philippines - The Philippine government hopes to receive the proceeds of the sale of its 40 percent stake in Petron Corp. to London's SEA Refinery Corp. before Christmas. The government sold its stake in Petron through Philippine National Oil Co. (PNOC) at P25.7 billion. PNOC sold 3.75 billion Petron shares at P6.85 per share, 34 percent higher than the oil firm's closing price of P5.10 at the Philippine Stock Exchange on Friday. The selling price is also five percent higher than SEA Refinery's purchase price of P6.531 per share for Saudi Aramco's 40 percent stake in Petron in May. "We hope to book it on or before December 24 since it is the last working day for the year," Finance Secretary Margarito B. Teves told reporters on Friday. In a statement, PNOC said SEA Aramco's purchase of the government's Petron stake "is seen as a testament to continued investor confidence in the country." The sale of Petron is part of the government's privatization program to raise funds and augment tax collections as the administration strives to achieve a balanced budget by 2010. - GMANews.TV