Bangchak Corporation Public Company Limited completed the payment for 2,283,750,000 ordinary shares, representing 65.99% of the total issued and paid-up ordinary shares of Esso (Thailand) Public Company Limited, or approximately THB 9.8986 per share. Bangchak will later launch a mandatory tender offer for the remaining shares in Esso (Thailand), or 34.01% of total shares, with the tender offer period set from 8 September to 12 October 2023. Bangchak is confident that this transaction will create synergy from the complementing potential, enhance energy security to provide Thai people with energy affordability, and retain profits (EBITDA) within the country of more than several billion baht.
Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, stated that “Bangchak’s share purchase agreement of Esso (Thailand) is a landmark moment for Thailand’s energy sector and the company, in line with the business expansion strategy to enhance energy security and strengthen national and regional energy business. The company will immediately assume operation of the refinery with a capacity of 174,000 barrels per day, the network of oil terminals, and a network of over 800 service stations across the country.”
Bangchak Group will have the highest production capacity in the country, totaling almost 300,000 barrels per day, from two world-class refineries: Bangchak Phra Khanong Refinery, and Bangchak Sriracha Refinery. The two refineries will be able to enhance their operations with synergy by complementing refinery technologies logistics and crude supply. This synergy will increase production capacity to meet market demands and enhance refining efficiency, as well as optimize turnaround maintenance plans.
Marketing services will boast greater coverage and be able to service more customers through the network of more than 2,200 service stations across the country. ESSO’s service stations, products, and aviation fuel will become products under the Bangchak brand. This creates opportunities to align service station development, providing consumers with greater access to Bangchak products, which will not only benefit Bangchak businesses but will hold significance for the energy industry in Thailand. As such, ESSO’s brand service stations will gradually change to become Bangchak service stations within a 2-year period. Fuel products sold at service stations will be high-quality products from Bangchak Group’s two world-class refineries. The fuel products are environmentally friendly and comply with the quality assurance standards of the Department of Energy Business (DOEB). Moreover, Bangchak premium-grade gasohol and biodiesel meet the Euro 5 standards and feature higher octane and cetane values than DOEB standards.
Esso Smiles members can continue to collect and redeem Esso Smiles points for one more year, until 31 August 2024, using the existing card or receive a special bonus of 100 points when transferring points to Bangchak Green Miles by 30 November 2023.
For Bangchak Green Miles members, aside from redeeming member points from refueling and merchandise purchase from Bangchak service stations for discounts or other personal preferences, members will also gain special points calculated from the increased fuel price if they refuel on the first day of the price increase, and will still be able to donate points to charitable organizations – a program that Bangchak has supported for the 18th consecutive year to sustain well-being in Thai society.
