Bangchak Corporation Public Company Limited (SET: BCP) has announced that its Board of Directors approved to acquire the shares and make a tender offer for the entire securities of Esso (Thailand) Public Company Limited (SET: ESSO).
BCP will directly acquire a total of 2,283,750,000 ordinary shares of ESSO, equivalent to approximately 65.99% of the total issued shares of ESSO from the seller, ExxonMobil Asia Holdings Pte. Ltd. (ExxonMobil Asia). The company noted that it had entered into a share purchase agreement on January 11, 2023.
In this regard, BCP is required to make a tender offer for the remaining 1,177,108,000 ordinary shares in ESSO (approx. 34.01% of the total issued shares in ESSO) after the completion of the transaction with ExxonMobil Asia.
BCP expected the purchasing value of the sale shares would be in a range of THB8.84 or THB9.63 per share, making the total value of approximately THB20,198 million or 21,982 million.
In an assumption that the tender offer price to remain the same, BCP would require around THB10,405 million to THB11,335 million to acquire the entire business.
BCP stated that the Transaction would more than double the company’s integrated R&M operations in Thailand and provide important catalysts for further growth and margin improvement.
The company said that it will utilize secured credit facilities from a financial institution to finance the transaction, the tender offer for the remaining shares of ESSO, as well as any third party and related parties debt refinancing to the extent necessary. As well as the company might also consider utilizing a part of the company’s cash and cash equivalents. As at 30 September 2022, the company had cash and cash equivalents of THB 33,288 million per the reviewed financial statements.