Petronas Dagangan selling stakes in Philippine units for RM532.5m

PETALING JAYA: Petronas Dagangan Bhd (PDB) is disposing of its 100% interest in Petronas Philippines Energy Inc (PEPI) and 40% interest in Duta Inc to Phoenix Petroleum Philippines Inc for RM532.5 million (US$124 million).

The principal domestic marketing arm of Petroliam Nasional Bhd (Petronas) had previously announced its plans to exit the liquefied petroleum gas (LPG) business in the Philippines.

“The divestment is part of PDB’s regular review of its portfolio of businesses and geographies in which it operates. The review entails, among others, whether the businesses can benefit from the introduction of new owners, and if monetisation can be undertaken profitably,” it said in a filing with Bursa Malaysia yesterday.

PDB said the proceeds will be used for the group’s FY2018-FY2020 capital expenditure. The divestment is expected to be completed in the third quarter of this year.

PDB shares closed 0.25% or six sen lower at RM24.10, with 435,900 shares traded. It has a market capitalisation of RM23.92 billion.

PEPI was incorporated in 1995 and undertakes LPG marketing in the Philippines, while Duta is a land holding company jointly owned with local partners.