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11 December 2023

ExxonMobil sells Esso Thailand stake for $603 millio

By Reuters

ExxonMobil has agreed to sell its two-thirds stake in Esso Thailand to Thai energy firm Bangchak Corporation, the companies said in separate statements, in a deal that values the shares at 20.1 billion baht ($603 million).

The sale includes the Sriracha oil refinery, select distribution terminals and a network of Esso-branded retail fuel stations. ExxonMobil said it would "continue to supply the Thailand market with branded finished lubricants and chemical products through a new company to be formed."

"ExxonMobil is focusing its investments on global production facilities to meet the world's demand for lower-emissions fuels and high-performance products, while divesting assets where others see the potential for greater value," said Karen McKee, president of ExxonMobil Product Solutions.

Bangchak said it would initially acquire ExxonMobil's 65.99% of Esso Thailand and then launch a tender offer for remaining shares, held mainly by institutional funds.

The transaction is expected to close in the second half of 2023, subject to regulatory approvals.

Bangchak said it would purchase 2,283,750,000 shares of Esso Thailand at an indicative price of 8.84 baht per share.

The deal will be funded by cash on hand, Bangchak said, noting it would add refining capacity of 174,000 barrels per day and 700 service stations.

"This investment is a step towards greater energy security, balancing our long-term strategy," said Bangchak chief executive Chaiwat Kovavisarach. ($1 = 33.3500 baht)