Govt books proceeds from Petron sale

MANILA, Philippines - The Bureau of the Treasury has confirmed the receipt of the proceeds for the sale of the government's stake in Petron Corp. to the Ashmore Group of London. The government booked P21.3 billion in non-tax revenues on December 23. The amount will help trim the anticipated budget deficit of the government for 2008. “Yes. The proceeds will augment revenues of government for whole of 2008 and helped in achievement of fiscal targets," National Treasurer Roberto B. Tan told reporters on Monday. The total sale price of the government's 40-percent stake in Petron, which it held through the Philippine National Oil Co. (PNOC), is P25.7 billion. The government, however, had to spend fo4 billion to cover the cost of investments of PNOC and P400 million for selling and advisory expenses. Petron used to be wholly owned by the government until the Ramos administration decided to sell 40 percent of its stake to Saudi Arabia Oil Co. (Saudi Aramco) for $535 million in 1994. On the same year, Petron conducted an initial public offering covering 20 percent of its stake. Its shares are currently traded at the Philippine Stock Exchange. Early this year, Saudi Aramco sold its Petron stake to the Ashmore Group through SEA Refinery Holdings. Ashmore likewise acquired a 10.57 percent stake of Petron through a tender offer. With the December 23 transaction, Ashmore now holds a 90.57 percent stake in Petron. It is also negotiating with food and beverage giant San Miguel Corp., which earlier said it is interested in buying a majority stake or 50.1 percent of Petron for P32 billion. San Miguel is currently exploring other business ventures, including telecommunications and utilities. - GMANews.TV