SINGAPORE, May 25 (Reuters) - Shares of Keppel Corp <KPLM.SI>
and Singapore Petroleum Company (SPC) <SPCS.SI> soared as much as
10.6 percent and 24 percent respectively on Monday, after Asia's
largest oil and gas producer PetroChina <0857.HK> said it will
buy Keppel's stake in SPC.
PetroChina is buying Keppel Corp's 45.51 percent stake in SPC
for S$1.47 billion ($1.02 billion) and plans to make a general
offer to buy the rest of the firm. [ID:nSIN335305]
The deal valued the Singapore oil refiner at S$3.2 billion
and was an equivalent of S$6.25 for each SPC share, compared to
Friday's closing price of S$5.04.
By 0120 GMT, SPC was up 21.4 percent at S$6.12 with 2.4
million shares traded, while Keppel was 7 percent higher at
S$7.44.
SPC shares a 285,000 barrels per day refinery in Singapore
with U.S. energy major Chevron Corp <CVX.N>, and it also owns
upstream oil and gas exploration and production concessions in
Australia, Southeast Asia and China.
It is the first overseas acquisition of a public company by
PetroChina, and the move for downstream fuel production adds to
efforts by Chinese oil majors to buy upstream oil exploration
assets around the world to secure energy supplies.
Keppel, the world's largest offshore oil rig builder, said in
the statement that together with PetroChina it plans to explore
opportunities in the offshore oil industry and in other areas.
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