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10 December 2019

Malaysia’s Petronas raises $1.4 billion by cutting listed unit stakes

Petronas is raising capital to fund overseas expansion after finishing up a $27 billion refinery and petrochemicals project at home.

Petroliam Nasional Bhd/Bloomberg

Petroliam Nasional ( Petronas) has raised about MYR 6 billion ($1.4 billion) by cutting its stakes in three listed units, reported Bloomberg.

The state oil company reduced its holdings in retail subsidiary Petronas Dagangan, natural gas transporter Petronas Gas and shipping company MISC—the share placements were executed on 9 December 2019. Petronas said in a statement it completed block trades in these companies, without saying how much it raised.

The divestment will rank among the biggest-ever block trades in Malaysia.

Petronas said in the statement the block trades were marketed to Malaysian institutional funds to allow for more local participation and ownership in these listed companies. The energy firm still retains its controlling stakes in the firms, which will continue to be its subsidiaries.

In April 2019, Wan Zulkiflee Wan Ariffin, Petronas’ CEO said that the firm plans to allocate a larger share of its future capital expenditure to projects in the Americas.


RELATED STORIES: Petroliam Nasional Petronas Dagangan Petronas Gas MISC





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