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Bangkok Bank provided a 32 billion baht loan to Bangchak as part of the funding for the purchase of ESSO (Thailand) shares. Bangchak Corporation, listed on the SET, is acquiring 65.99% of Esso (Thailand) shares from ExxonMobil Asia Holdings. The deal is estimated to be worth 55 billion baht.
As part of the deal, Bangchak will receive an oil refinery with a capacity of 174,000 barrels per day and 700 fueling stations around the country. Over the next two years, Bangchak’s logo will replace Esso’s logo at these stations. This will increase Bangchak’s oil refining capacity to 294,000 barrels per day, with 2,150 operating fueling stations.
“Bangkok Bank is pleased to provide financial support to Bangchak for this historic share acquisition deal in Thailand’s energy industry,” said the bank’s president, Chartsiri Sophonpanich.
“The Bank believes this deal will enhance Bangchak’s business capabilities and improve the country’s energy security. As a ‘trusted partner,’ Bangkok Bank is ready to provide further support to Bangchak in the future to promote mutual growth,” he added.
Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation, mentioned that the financial support plays a significant role in driving Bangchak’s strategic plan to acquire ESSO. The company is confident that the purchase of ESSO shares will strengthen Thailand’s energy security, enhance the company’s competitiveness, and increase energy accessibility for consumers.
Afterward, Bangchak will launch a tender offer for the remaining shares of ESSO in accordance with the legal timeframe. In addition to the Bangkok Bank loan, Bangchak will also use its own sources of funding for the transaction, which is expected to be completed by the end of 2023.
“I would like to sincerely thank Bangkok Bank for their trust in Bangchak’s potential and their strong support throughout the process, from the beginning to the closing of this deal,” Chaiwat said.
“Bangchak is pleased to have Bangkok Bank as our business partner in this crucial landmark in the history of the Bangchak Group and the Thai energy business,” he added.
Chaiwat stated that the funding supported by Bangkok Bank will ensure enhanced energy security for the country and strengthen the company’s business. Simultaneously, it will make it more convenient for consumers to access various products and services, he added.
