Singapore Petroleum Company Limited announced that the Company and Eni International B.V., equal joint venture partners in ItalSing Petroleum Company, have sold a combined 55.0% stake in ItalSing to Nippon Oil (Asia) Pte Ltd ("NOASIA"), a wholly owned subsidiary of Nippon Oil Corporation. SPC and ENI will each continue to hold 22.5% in ItalSing after the sale.
NOASIA, together with SPC and ENI will continue to use the ItalSing facilities to manufacture and blend lube oils for the local as well as overseas markets.
SPC's divestment of its 27.5% stake is for a cash consideration of S$8.025 million. SPC's divestment of the stake takes into account the synergies and benefits that Nippon Oil will bring to the enlarged enterprise and is on a willing buyer, willing seller basis.
SPC's original investment of 50.0% interest in ItalSing was approximately S$6.0 million. The above transaction is not expected to have a material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.
Commenting on the transaction, SPC CEO Koh Ban Heng said, "We welcome Nippon Oil as our partner in lubricant blending and development. With Nippon Oil's global lubricant networks and markets, ENI and SPC look forward to working with Nippon Oil to create and enhance the value of our joint investment in ItalSing."
With the inclusion of NOASIA as a shareholder, ItalSing will be changing its name to ENEOS ItalSing Pte Ltd.
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