'ExxonMobil must clarify Boustead position'

The onus is now on ExxonMobil Corporation to clarify Boustead Holdings Bhd's (BHB) position that it had no intention of closing down Esso Malaysia's Port Dickson refinery when submitting its bid for ExxonMobil's downstream assets in Malaysia.

ExxonMobil, at a press conference on Aug 28, had said San Miguel
Corporation's offer was the only one among 20 bids which had included plans to expand the 48-year-old refinery.

However, Boustead revealed yesterday that its bid for Esso Malaysia was made
on the basis of business continuity whereby the refinery would be operating as
usual and that there would not have been any staff lay-offs.


It also said the information released to the press on Aug 28 by ExxonMobil
on its sale of 65 per cent of Esso Malaysia and other downstream assets in
Malaysia to San Miguel Corporation contained inaccuracies.

Analysts said these needs to be clarified by ExxonMobil. They also said that since it was a purely commercial deal, ExxonMobil, as the vendor, has to explain how San Miguel's offer was the best deal on the table and perhaps indicate how much of a premium it was compared with other offers.

ExxonMobil also needs to clarify its statement on Aug 28 that only San
Miguel's bid included plans to expand the refinery when Boustead had also
indicated likewise in its statement to Bursa Malaysia.

Otherwise, it could be misconstrued as a mispresentation of Boustead's
offer, the analysts said.

ExxonMobil also owes an explanation to Esso Malaysia's minority shareholders
and to the Malaysian public in view that Esso Malaysia is a strategic asset and
has been in the country for more than 100 years.

Analysts said these innaccuracies needed to be clarified and perhaps, the
ministries, which would have to approve the deal, need to inquire ExxonMobil
about this before making their decision.

Boustead said that it submitted a fair and competitive offer in terms of
price in July to ExxonMobil for its downstream assets, which included the 65 per cent stake in Esso Malaysia Bhd, a 100 per cent stake in ExxonMobil Malaysia Sdn Bhd and 100 per cent of ExxonMobil Borneo Sdn Bhd.

"BHB noted that the average share price of Esso Malaysia for the period
from Jan 3 to June 30 was RM3.943 per share," it said.

It said BHB's bid for the 65 per cent shares in Esso Malaysia Bhd took into
consideration the relevant interests of minority shareholders. -- Bernama