Friday 29 Mar 2024
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KUALA LUMPUR (Nov 3): National oil company Petroliam Nasional Bhd (Petronas) is injecting three companies that are currently undertaking petrochemical works at its RM60 billion Refinery and Petrochemical Integrated Development (RAPID) project in Johor, into Petronas Chemicals Group Bhd for RM13,000.

Following that, the chemical arm of Petronas will assume the assets and liabilities of the three companies, which amount to approximately US$110 million (RM470.52 million).  

PetChem, which is 64.35%-owned by Petronas, is acquiring the units from Petronas Refinery and Petrochemical Corporation Sdn Bhd (PRPC), a wholly owned unit of Petronas.

“The payment for the paid up capital in the companies of RM13,000 is expected to be paid to PRPC on Nov 3, 2015, while the liabilities of the companies of US$110 million is expected to be settled by the respective companies before the end of the year,” said PetChem in an announcement to Bursa Malaysia today.

The three companies — PRPC Glycols Sdn Bhd, PRPC Polymers Sdn Bhd and PRPC Elastomers Sdn Bhd — are currently working on petrochemical projects with a future total investment cost of about US$3.9 billion (RM16.68 billion), with a combined total capacity of approximately 2.7 million tonnes per annum (2.7 mtpa), it added.

Following the acquisition, PetChem said the three companies will become its wholly-owned subsidiaries.

However, the chemical products manufacturer said there may be a potential dilution to its equity in the project companies, based on current arrangements between PRPC and its existing partners — but did not elaborate.

"The acquisition confers upon PetChem, the ownership of RAPID's petrochemicals projects consisting of the polymers, glycols and elastomers segments," it said.

PetChem said the transaction does not have any effect on its issued and paid up share capital, nor its earnings or the net assets at the transaction date of Nov 3.

"The maximum percentage ratio for the transaction is 1.8% at the transaction date. The [three companies'] project is expected to contribute positively to both future revenue and earnings," it added.

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