Glencore to buy 51% stake in Chemoil Energy, valuing firm at US$459m
By Mok Fei Fei, Channel NewsAsia | Posted: 15 December 2009 1655 hrs
SINGAPORE: The Swiss-based commodity supplier Glencore International has bought a 51 per cent stake in the Singapore marine fuel supplier Chemoil Energy.
It is paying about US$233 million for the majority stake from the Chandran Family Trust and has offered to buy the remaining shares that it does not already own. The offer values Chemoil at US$459 million.
Singapore plays host to thousands of ships every year as they sail through one of the world's busiest shipping lanes.
Marine fuel is big business here and Chemoil is among the larger players, with operations stretching from Singapore to Los Angeles. Glencore appears to be seeking a piece of the action with its offer to buy Chemoil.
Analysts said Glencore will reap many synergies from getting access to Chemoil's marine fuel business and their hard assets such as fuel storage terminals.
Victor Shum, senior principal, Purvin & Gertz, said: "Having oil storage is really a key advantage for a trading house and when Glencore owns these terminals they have really more control over their use and can move vessels and cargoes in and out with great flexibility."
Glencore will pay 35.52 US cents a share to buy the 51 per cent stake in Chemoil from the Chandran Family Trust. The price is about 21 per cent lower than Chemoil's closing price of 45 US cents last Friday.
Chemoil's founder Robert Chandran died in a helicopter crash last year and his family has been trying to sell the business.
Speculation of possible acquisitions has already helped Chemoil shares to more than double since the start of the year.
Analysts said the outlook for marine fuel sales appears good. Sales have already been strong this year despite the weak economic environment. And next year's prospects look even better with the global economy showing signs of improving.
Mr Shum said: "When the global economy recovers going forward, we can expect the bunker sector to get stronger in Singapore. So it's an attractive business in the long haul."
Glencore, founded in 1974, is a privately held group owned by its management and employees. It employs over 2,000 people in its global marketing operations in some 50 offices in over 40 countries. - CNA/vm
沒有留言:
張貼留言