Aramco's Petron stake to go to Ashmore for $550M

MANILA, Philippines- Aramco Overseas Co., the state-owned oil firm of the Kingdom of Saudi Arabia, has accepted Ashmore Group's $550-million offer for its 40-percent stake in Petron Corp. In a statement, Philippine National Oil Co., the other major stakeholder of Petron with 40 percent, said it received on Friday a notice from Aramco indicating its desire to sell its shares. "Philippine National Oil Co. received today a notice from Aramco Overseas Company, indicating its desire to sell all of its shares, representing a 40 percent stake in Petron Corp. The transfer notice, as required and pursuant to the shareholders agreement, also named SEA Refinery Holdings, a company owned by Ashmore Group funds, as the purchaser," PNOC said in the statement. Just hours before the PNOC statement was released, Petron, the country's largest oil refiner, disclosed Ashmore's purchase offer in a statement to Philippine Stock Exchange. Ashmore is a global asset management company listed in the London Stock Exchange with assets under management amounting to $36.5-billion and has partnerships worldwide, including significant Philippines-related investments, Petron said in its statement. Company officials said any change in Petron's ownership structure will not derail its operations and expansion plans. “Over the years, Petron has built a solid business that has resulted in undisputed industry leadership... This will not change, regardless of the company’s ownership structure. In the meantime, we will continue to focus on initiatives to sustain our growth momentum and deliver the best value to our stakeholders," said Petron Corp. chairman and chief executive officer Nicasio I. Alcantara. For its part, PNOC said it will evaluate the terms and conditions associated with Ashmore's offer, and decide whether to exercise its Right of First Offer to purchase the shares. “We have received a notice from Aramco Overseas Company regarding the proposed sale of its shares in Petron Corporation, and will carefully evaluate this filing with the diligence and rigor necessary and appropriate to determine the best course of action," said PNOC president and chief executive officer Antonio M. Cailao. Petron used to be 100-percent owned by the government through PNOC until Aramco bought its 40-percent stake from the government in 1994. The company then went public and sold 20 percent to individual stakeholders. - GMANews.TV