Petronas Dagangan Bhd (PetDag) has divested its liquefied petroleum gas (LPG) bottling and distribution operations in Vietnam, which it bought from another Petroliam Nasional Bhd (Petronas) subsidiary three years ago.
Petronas’ main domestic marketing arm told Bursa Malaysia that its unit PDB (Netherlands) BV had signed agreements to sell its 100% equity interests in Petronas (Vietnam) Co Ltd (PVL) and Thang Long LPG Co Ltd (TLLCL) to Totalgaz Vietnam Ltd, which is the LPG operation of French multinational energy player Total in the republic.
“The divestment is pursuant to PetDag’s portfolio rationalisation,” it said in a short announcement to Bursa Malaysia on Friday. The attached press statement comprises three paragraphs which do not elaborate on the rationale or give the sale price.
PetDag expects the divestment to be be completed by the second quarter of 2016, subject to the conditions of the share sale and purchase agreements being met.
The two Vietnam-incorporated firms were bought for US$2mil (RM8.6mil) from Petronas International Corp Ltd in 2012. They were bought together with other Petronas’ downstream companies in the Philippines and Thailand.
At the time, PetDag said the proposed acquisitions represented an opportunity for it to grow and geographically diversify its revenue and earnings base.
“The LPG market in the Philippines and Vietnam combined has approximately two times the demand in Malaysia while the lubricants market in the Philippines and Thailand combined is approximately four times that in Malaysia,” the downstream oil and gas product retailer had said in its Bursa statement in 2012.
It is not known what will be the fate of PetDag’s Philippine and Thai operations. PetDag, which is 69.9% owned by Petronas, had embarked on a “regional play” through its Vietnamese, Philippine and Thai presence starting 2012.
There certainly seems to be no plan for PetDag to grow geographically in the region. Petronas president and former PetDag chairman Datuk Wan Zulkiflee Wan Ariffin said in April that there were no immediate plans for PetDag to expand to other markets, following the expansion in late-2012 to Vietnam, the Philippines and Thailand.
Even at the exploration and production level, Petronas has lowered its presence in Vietnam. Late last year it sold off its three offshore blocks in Vietnam to SapuraKencana Petroleum Bhd for US$400mil (RM1.7bil).
PetDag shares shed 12 sen to close at RM24.58 on Friday.
Petronas’ main domestic marketing arm told Bursa Malaysia that its unit PDB (Netherlands) BV had signed agreements to sell its 100% equity interests in Petronas (Vietnam) Co Ltd (PVL) and Thang Long LPG Co Ltd (TLLCL) to Totalgaz Vietnam Ltd, which is the LPG operation of French multinational energy player Total in the republic.
“The divestment is pursuant to PetDag’s portfolio rationalisation,” it said in a short announcement to Bursa Malaysia on Friday. The attached press statement comprises three paragraphs which do not elaborate on the rationale or give the sale price.
PetDag expects the divestment to be be completed by the second quarter of 2016, subject to the conditions of the share sale and purchase agreements being met.
The two Vietnam-incorporated firms were bought for US$2mil (RM8.6mil) from Petronas International Corp Ltd in 2012. They were bought together with other Petronas’ downstream companies in the Philippines and Thailand.
At the time, PetDag said the proposed acquisitions represented an opportunity for it to grow and geographically diversify its revenue and earnings base.
“The LPG market in the Philippines and Vietnam combined has approximately two times the demand in Malaysia while the lubricants market in the Philippines and Thailand combined is approximately four times that in Malaysia,” the downstream oil and gas product retailer had said in its Bursa statement in 2012.
It is not known what will be the fate of PetDag’s Philippine and Thai operations. PetDag, which is 69.9% owned by Petronas, had embarked on a “regional play” through its Vietnamese, Philippine and Thai presence starting 2012.
There certainly seems to be no plan for PetDag to grow geographically in the region. Petronas president and former PetDag chairman Datuk Wan Zulkiflee Wan Ariffin said in April that there were no immediate plans for PetDag to expand to other markets, following the expansion in late-2012 to Vietnam, the Philippines and Thailand.
Even at the exploration and production level, Petronas has lowered its presence in Vietnam. Late last year it sold off its three offshore blocks in Vietnam to SapuraKencana Petroleum Bhd for US$400mil (RM1.7bil).
PetDag shares shed 12 sen to close at RM24.58 on Friday.
Souce: http://www.thestar.com.my/
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