23 April 2012
Esso minority shareholders told to reject Petron offer on positive prospects of the oil and gas industry - Kenanga Investment Bank
Kenanga Investment Bank Bhd, which is the adviser for Esso Malaysia Bhd (EMB) minority shareholders, has advised them to reject the takeover offer by Petron Corp, an affiliate of Philippines-based San Miguel Corp (SMC) so that they may benefit from the positive prospects of the oil and gas industry in which EMB operates in.
Apart from this, the investment bank also noted that the offer price of RM3.59 per share was not attractive following a few methods of financial evaluation, it told shareholders in a circular to Bursa Malaysia.
Last month saw the completion of ExxonMobil International Holdings Inc’s disposal of its 65% stake in EMB to SMC.
Consequently, SMC announced that its affiliate, Petron Corp, had submitted a mandatory takeover offer to acquire the remaining 35% at RM3.59 per share.
In its circular, Kenanga said Petron had intended to continue with the existing businesses of EMB and to invest in EMB’s existing business and assets as well as in new assets.
“We are of the view that shareholders should reject the offer to participate in the company’s future growth,” it said.