San Miguel Corporation (SMC) currently controls 68 percent of oil refiner Petron Corporation (PCOR).
On 15 December 2010, SMC fully exercised its option to acquire 60 percent of the oustanding shares of Sea Refinery Corporation (SRC), a shareholder of PCOR, from SEA Refinery Holdings BV (SEA BV), as provided under the Option Agreement dated 24 December 2008. The SRC block represents 24 million PCOR shares. SMC initially owns 38 percent stake in PCOR before the acquisition of SRC.
SMC started exercising its option on June 15 when it acquired 40 percent of SRC under the option agreement. With the recently sell out from SEA BV of its SRC stake, SMC now owns 100 percent of SRC. SRC owns 50.1 percent of SMC, making it a majority owner of SMC. This brings the SMC stake in PCOR from the initial 38 percent to 68 percent.
Both SRC and SEA BV are subsidiaries of the global fund manager Ashmore Group.
On 15 December 2010, SMC fully exercised its option to acquire 60 percent of the oustanding shares of Sea Refinery Corporation (SRC), a shareholder of PCOR, from SEA Refinery Holdings BV (SEA BV), as provided under the Option Agreement dated 24 December 2008. The SRC block represents 24 million PCOR shares. SMC initially owns 38 percent stake in PCOR before the acquisition of SRC.
SMC started exercising its option on June 15 when it acquired 40 percent of SRC under the option agreement. With the recently sell out from SEA BV of its SRC stake, SMC now owns 100 percent of SRC. SRC owns 50.1 percent of SMC, making it a majority owner of SMC. This brings the SMC stake in PCOR from the initial 38 percent to 68 percent.
Both SRC and SEA BV are subsidiaries of the global fund manager Ashmore Group.
SMC plans to raise its stake in PCOR to as much as 90 percent in the next two months if the Ashmore Group allows them to acquire around 22 percent of PCOR stake.
SRC is an affiliate of the London-based fund, Ashmore Group. The Ashmore Group acquired the 40 percent stake on PCOR from Saudi Aramco in 2008. It afterwards acquired another 40 percent from the Philippine National Government. It also made tender offers to PCOR minority shareholders, bringing its total stake in PCOR to 90.6 percent.
SMC believes that the Philippine's largest oil refining and marketing company is being undervalued despite its opportunities. The remaining free float under PCOR now only runs at 7.5 percent.
Sources:
Alena Mae S. Flores: "SMC takes over Petron," Manila Standard 16 December 2010
James A. Loyola: "SMC completes acquisition of 68% Petron," Manila Bulletin 17 December 2010
James A. Loyola: "SMC completes acquisition of 68% Petron," Manila Bulletin 17 December 2010
Doris Dumlao: "San Miguel secures controlling stake in Petron," Philippine Daily Inquirer 16 December 2010
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