The government's Philippine National Oil Co. (PNOC) decided against exercising its right to match Ashmore Group's offer to buy Saudi Aramco's 40% stake in oil refiner and retailer Petron Corp. PNOC owns another 40% stake in Petron. Ashmore, through unit SEA Refinery Holdings, offered to buy Saudi Aramco's 3.75 bln shares in Petron, currently held under Aramco Overseas Co., for US$550 mln.
As per an agreement signed between PNOC and Aramco in 1994, Aramco should first offer its 40% stake in Petron to PNOC before it considers offers from other buyers. Saudi Aramco supplies the crude oil requirement of Petron, which accounts for about 40% of the country's total fuel requirements.
Last week, JG Summit Petrochemical Corp. offered to buy PNOC's 40% holding in Petron, which consists of 3.75 bln shares, at P6.55 each, at US$577 mln.