The share price of Bangchak Corporation Public Company Limited (SET: BCP) jumped in the morning session after the announcement of a takeover in Esso (Thailand) Public Company Limited (SET: ESSO) that saw its prices plunge sharply as the purchasing prices were lower than the current market price.
As of 10:23 BKK time on Thursday, the share price of BCP rose THB2.00 or 6.30% to THB33.75 per share. On the other hand, the share price of ESSO dropped by THB1.50 or 13.51% to THB9.60 per share.
BCP stated that it 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.