Representatives shake hands during a completion ceremony in Kuala Lumpur, Malaysia, Dec. 22, 2016. A refiner based in east China's Shandong Province announced on Thursday that it has completed the acquisition of a 51 percent stake in Shell Refining Company (SRC) in Malaysia, one of a few such acquisitions done by petroleum companies outside the three major state-owned enterprises including Sinopec and PetroChina. (Xinhua/Chong Voon Chung)
KUALA LUMPUR, Dec. 22 (Xinhua) -- A refiner based in east China's Shandong Province announced on Thursday that it has completed the acquisition of a 51 percent stake in Shell Refining Company (SRC) in Malaysia, one of a few such acquisitions done by petroleum companies outside the three major state-owned enterprises including Sinopec and PetroChina.
The refiner, Shangdong Hengyuan Petrochemical Company Limited, had agreed to buy the controlling stake for 66.3 million U.S. dollars and will continue to provide petroleum products to Shell's downstream businesses in Malaysia.
The acquisition was conducted through Shandong Hengyuan's subsidiary in Malaysia, Malaysia Hengyuan International Limited.
When attending a completion ceremony in Kuala Lumpur, Wang Youde, chairman of Shandong Hengyuan, said the acquisition will provide for the first time for his company to have an overseas sales platform and is a transformation from refining to tap into the capital market as SRC is a company listed in Malaysia's main stock exchange Bursa Malaysia.
SRC, the refinery at Port Dickson, has a capacity of 156,000 barrels-per-day (bpd) with 90 percent of its oil products consumed within Malaysia. According to Wang's estimate, the acquisition will add some another six million tonnes of crude oil to its current 3.5 million tonnes at its disposal.
The completion of the deal means that a mandatory general offer has been triggered. The company has said it intends to buy the remaining 49 percent stake.
