Bangchak completed payment for 65.99% of Esso (Thailand)

Editorial Staff 

Bangchak completed payment for 65.99% of Esso (Thailand) shares historic energy deal closing
Bangchak Corporation Public Company Limited completed the payment for 2,283,750,000 ordinary shares, representing 65.99% of the total issued and paid-up ordinary shares of Esso (Thailand) Public Company Limited, or approximately 9.8986 baht per share.

Bangchak will later launch a mandatory tender offer for the remaining shares in Esso (Thailand), or 34.01% of total shares, with the tender offer period set from 8 September to 12 October 2023. Bangchak is confident that this transaction will create synergy from the complementing potential, enhance energy security to provide Thai people with energy affordability, and retain profits (EBITDA) within the country of more than several billion baht.

Chaiwat Kovavisarach, Group chief executive officer and president of Bangchak Corporation Public Company Limited, stated that “Bangchak’s share purchase agreement of Esso (Thailand) is a landmark moment for Thailand’s energy sector and the company, in line with the business expansion strategy to enhance energy security and strengthen national and regional energy business.

The company will immediately assume operation of the refinery with a capacity of 174,000 barrels per day, the network of oil terminals, and a network of over 800 service stations across the country.” Bangchak Group will have the highest production capacity in the country, totaling almost 300,000 barrels per day, from two world-class refineries: Bangchak Phra Khanong Refinery, and Bangchak Sriracha Refinery.

Marketing services will boast greater coverage and be able to service more customers through the network of more than 2,200 service stations across the country. ESSO’s service stations, products, and aviation fuel will become products under the Bangchak brand.

As such, ESSO’s brand service stations will gradually change to become Bangchak service stations within a 2-year period. Fuel products sold at service stations will be high-quality products from Bangchak Group’s two world-class refineriesshares.