The total value of shares in Esso (Thailand) to be acquired by Bangchak Corporation is estimated at 20.9 billion baht, or 9.18 baht per share, according to the latest calculation released by Bangchak's financial advisor Krungthai XSpring Securities.
The buyout deal was previously expected to be made at 8.84 baht per share, Chaiwat Kovavisarach, chief executive of Bangchak, said earlier.
He said Bangchak aims to buy a 65.99% share in Esso (Thailand) from Esso Asia Holdings Pte and will launch a tender offer for the remaining 34.01% of ordinary shares held by other shareholders of Esso once the transaction has been completed.
The indicative price of 8.84 baht per share was based on the company's financial performance in the third quarter of 2022.
The new value of 9.18 baht per share is based on Esso (Thailand)'s financial statement that ended on Dec 31 last year and the dividend payment announcement for its operating results in the 2022 fiscal year on March 13, said Krungthai XSpring Securities.
"The total value of shares is for illustration purposes only and not the final purchase price in the transaction," said the financial advisor.
"The total value of shares on the closing date of the transaction may increase or decrease."
According to Mr Chaiwat, the acquisition plan needs to be endorsed by Bangchak's shareholders who will meet at the firm's annual meeting to be held next month. If it is approved, he expects the transaction to be completed within the second half of this year.
The new asset will increase Bangchak's refinery capacity by 174,000 barrels per day, bringing its total capacity to 294,000 bpd, the firm said.
Synergy with Esso is expected to help Bangchak save 1.5-2 billion baht in operating costs.
Mr Chaiwat is not concerned that petrol stations run by Esso will be located in the same areas as Bangchak's because the two firms usually operate facilities in different locations -- Esso in cities and Bangchak in suburban areas.
