Friday, Mar 14, 2008


 
   (Adds comments from PNOC and Petron, background)

MANILA (Dow Jones)--Petron Corp. (PCOR.PH) - the Philippines' largest oil company by assets - Friday said that major shareholder Aramco Overseas Co. plans to sell its entire 40% stake to SEA Refinery Holdings, a company owned by Ashmore Group PLC (ASHM.LN).

It added that the Ashmore unit has offered $550 million for the 3.75 billion Petron shares held by Aramco Overseas - a subsidiary of Saudi Aramco, the national oil company of the Kingdom of Saudi Arabia.

Officials from Aramco and Ashmore weren't immediately reachable for comment.

State-owned Philippine National Oil Co. - Petron's other major shareholder with a 40% stake - said it will evaluate the terms of Ashmore's proposal and decide whether to exercise its right of first offer to purchase the shares.

"We have received a notice from Aramco Overseas regarding the proposed sale of its shares in Petron, and will carefully evaluate this filing with the diligence and rigor necessary and appropriate to determine the best course of action," said PNOC President and Chief Executive Antonio Cailao.

In 1994, the government privatized Petron, with PNOC selling a 40% stake to Aramco Overseas for $535 million.

PNOC held the other 40%, while the remaining 20% was sold to the public.

At the current foreign exchange rate of PHP41.45 to the U.S. dollar, Ashmore's offer values Petron at PHP6.08 per share, compared to Thursday's close of PHP6.10.

Virgina Ruivivar, Petron's public affairs manager, told Dow Jones Newswires that Aramco is realigning its investment portfolio with the intention of expanding its capacity in Saudi Arabia.

Petron Chairman and Chief Executive Nicasio Alcantara said the company is looking forward "to continuing our relationship commercially under Saudi Aramco's commitment to maintain crude oil supply."

"Petron's business remains strong and I am confident that our momentum will continue," Alcantara said.

The company's net profit has more than doubled in the past few years, rising to PHP6.01 billion in 2006 from PHP2.92 billion in 2002.

-By Cecilia E. Yap and Cris Larano, Dow Jones Newswires; (632) 848-5051; cecilia.yap@dowjones.com

(END) Dow Jones Newswires

March 13, 2008 22:23 ET (02:23 GMT)