SC, Bursa Malaysia and MSWG urged to look into sale of Shell refinery

A passenger plane flies over a Shell logo at a petrol station in west London, in this January 29, 2015 file photo. Royal Dutch Shell, Europe's largest oil company, reported its lowest annual income in at least 13 years on February 4, 2016 as slumping oil prices hit profits. REUTERS/Toby Melville/Files TPX IMAGES OF THE DAY

KUALA LUMPUR: The Malaysia Malay Traders and Entrepreneurs Association (Perdasama) has called on the Securities Commission (SC), Bursa Malaysia and the Minority Shareholder Watchdog Group (MSWG) to look seriously into the sale of Shell Refining Co (Federation of Malaya) Bhd (SRC) to Malaysia Hengyuan International Ltd (MHIL). 

Its president Datuk Moehamad Izat Emir said they should play their role to protect the 30% stake held by the country’s investment institutions, namely Permodalan Nasional Bhd, the Employees Provident Fund and the Retirement Fund Inc in the refinery. 

Moehamad Izat said the sale, which was subjected to regulatory approvals, was made at a discount of 63.6% of the SRC share price of RM4.94 on the last day of trading last Friday before the transaction was announced on Monday. 

“If this transaction is approved, it will bring great harm to the national investment institutions and Malaysian individuals,” he said in a statement on Friday. 

On Monday, SRC’s parent company Royal Dutch Shell announced that it had reached an agreement to sell a 51% stake in SRC to MHIL from China for a total cash consideration of US$66.3mil or US$0.43 per share. 

SRC is responsible for refining about 30% of the country’s crude oil production. - Bernama