SET-listed energy conglomerate Bangchak Corporation has completed its purchase of shares in Esso Thailand via a tender offer, valued at 3.54 billion baht, leading to a total of 76.3% ownership in Esso Thailand.
Bangchak earlier concluded the purchase of a 65.99% share in Esso Thailand, the operator of Esso petrol stations, from Esso Asia Holdings Pte for 22.6 billion baht.
It also announced it would buy the other 34.01% stake via a tender offer from investors in the stock market at 9.89 baht per share from early September to Oct 12.
Bangchak eventually bought an additional 10.31% share, said Phatpuree Chinkulkitnivat, Bangchak's senior executive vice-president for accounting and finance.
There were a total of 1.177 billion shares to be bought under the tender offer, but the company could acquire only 358.4 million.
Ms Phatpuree said part of the funds allocated for the tender offer came from a loan granted by Bangkok Bank and Bangchak's cash on hand in order to maintain the debt-to-equity ratio at below 1.1 times.
Bangchak earlier announced it expects to create synergy by combining its business with Esso Thailand and anticipates gaining an additional 3 billion baht from the move within 2025.
The company plans to change the name of Esso-owned petrol stations to Bangchak in November.
The synergy plan covers key issues in terms of economy of scale concerning back office operation expenses and simplified management.
This will help BCP reduce costs by 1.5 billion baht a year, according to Ms Phatpuree.
She expects Bangchak will gain an additional 1 billion baht from oil refinery improvements, new oil products, gross refinery margin optimisation and a coordinated maintenance schedule.
The company will also get 500 million baht from crude oil co-loading, the expansion of lower-cost logistics and growth in the value and volume of oil and non-oil trading.
Between September and December, BCP aims to gain 625 million baht through the business synergy and receive more next year until it reaches its goal of 3 billion baht in 2025.