ExxonMobil to sell two-third of its stake in Thai business for $603m

ExxonMobil has agreed to sell two-thirds of its stake in Esso Thailand to Thai energy firm Bangchak Corporation, the companies announced separately, in a deal valued at 20.1 billion baht ($603 million).

The Sriracha oil refinery, select distribution terminals, and an Esso-branded retail fuel station network are all included in the sale. ExxonMobil stated that it would "continue to supply the Thailand market with branded finished lubricants and chemical products via a new company that will be formed."

"ExxonMobil is focusing its investments on global production facilities to meet the world's demand for lower-emissions fuels and high-performance products, while divesting assets where others see the potential for greater value," said Karen McKee, president of ExxonMobil Product Solutions.

Bangchak said it would first acquire ExxonMobil's 65.99 percent stake in Esso Thailand before launching a tender offer for the remaining shares, which are mostly held by institutional funds.

Subject to regulatory approvals, the transaction is expected to close in the second half of 2023.

Bangchak said it would buy 2,283,750,000 Esso Thailand shares at an indicative price of 8.84 baht per share.

Bangchak stated that the deal would be funded by cash on hand and would add 174,000 barrels per day of refining capacity as well as 700 service stations.