Petronas raises RM6bil from stake reduction


  • Corporate News
  • Tuesday, 10 Dec 2019

Essential entities: Petronas retains its controlling stakes in the three companies which will continue to be its subsidiaries. — Reuters

PETALING JAYA: Petroliam Nasional Bhd’s (Petronas) has raised some RM6bil after cutting its stakes in MISC BHD, Petronas Dagangan Bhd (PetDag) and PETRONAS GAS BHD (PetGas).

According to market data, MISC saw 228 million shares cross yesterday at RM7.94, which was 39 sen below last Friday’s closing price.

The block of shares accounted for a 5.1% stake.

PetGas saw 191.15 million shares done off-market at RM15.03 per share, or 77 sen below last Friday’s close of RM15.80.

In PetDag, 59 million shares exchanged hands at RM22.43, which was nine sen higher than last Friday’s close of RM22.34.

Petronas confirmed it had successfully completed block trades of its shares in MISC, PetDag and PetGas, with the blocks marketed to Malaysian institutional funds.

It said the trades were carried out as part of Petronas’ portfolio management strategy.

“The sale of the shares would also allow for more local participation and ownership in these publicly listed companies, ” it said.

The group said it retained its controlling stakes in the three firms which will continue to be its subsidiaries.

“We remain committed to these companies which are essential entities in the Petronas integrated business value chain, ” it said.

Previously, Petronas owned 69.86% in PetDag, 60.66% in PetGas and 62.67% in MISC.

At close yesterday, PetDag was down 18 sen at RM22.16, PetGas was down 20 sen at RM15.60 and MISC was four sen lower at RM8.29.

Earlier, Bloomberg had reported that the stake sale by Petronas ranked among the biggest-ever block trades in the country.

Petronas was raising capital to fund its overseas expansion following the completion of its refinery and petrochemical integrated development project in Pengerang, Johor.

Petronas, in its third quarter results reported last month, had seen profit fall almost by half, dragged down by lower crude oil prices and net impairment losses.

The national oil company said its profit after tax and profit before tax for the quarter ended Sept 30 had fallen by 48% and 52% to RM7.42bil and RM9.01bil, respectively, compared with RM14.33bil and RM18.87bil a year earlier.

The impact, however, was partly offset by lower net product and production costs, as well as lower tax expense.

Revenue for the quarter had declined 14% to RM55.11bil from RM63.91bil previously, due to lower average realised prices for major products and the lower sales volume of crude oil.

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