Wednesday, July 23, 2008 Ashmore won't change Petron management
LONDON-based Ashmore Group will not have the full control in the country's largest oil refiner Petron Corporation even if it would be able to hold 60 percent of the shares in the company.
Energy Secretary Angelo Reyes said that under the agreement, Ashmore will still appoint only five representatives in the board.
"Regardless of the increase in the shareholdings of Ashmore, whether 50 or 60 percent, they will still be representing five seats in the board," Reyes said.
"There will be no change in management. They will maintain the 5-5, the same number of people in the board," he added.
The energy chief said the state-run Philippine National Oil Company (PNOC) will still hold the chairmanship post while the president will come from Ashmore.
The position of chief executive officer, according to him, will be rotated yearly but this time it will come from the PNOC.
Last May, Ashmore bought 40 percent from Saudi Aramaco for US$550 million and tendered for the remaining 60 percent of about US$827.23 million.
Reyes earlier rejected the tender offer made by Ashmore saying if the government will sell its share it should be with a premium and the "most advantageous and most beneficial to the shareholders."
At present, the government, through PNOC holds 40 percent of the shares in Petron, Ashmore controls the other 40 percent while 20 percent are owned by the public with the 10 percent listed at the Philippine Stock Exchange as mandated under the oil deregulation law.
Reyes said if the government will take advantage of the tender offer, it would lose "effective control" over Petron.
Petron has 9.375 billion outstanding shares and a market capitalization of P55.3 billion.
In 1994, the Philippine government sold its 40 percent share in the PNOC to Aramco for US$535 million; and it was agreed that the PNOC would be given the right to match or assign an eligible party should the Saudi-based oil company decide to sell its shares.
Saudi Aramco announced last April that it entered into an agreement with Ashmore Group through its subsidiary, Sea Refinery Holdings, for the sale of its 40 percent stake in Petron at US$550 million. (MSN/Sunnex)
