Singapore: Leading commodity trader Glencore has bought a 51 percent stake in Singapore marine fuel supplier Chemoil Energy and offered to buy all remaining shares, according to Reuters. The family of Chemoil founder Robert Chandran has agreed to sell its majority stake in the firm to Glencore for an undisclosed sum. Chandran's family has been looking to sell its stake after he was killed in a helicopter crash in Indonesia in January, 2008.
Glencore, the world second-largest independent oil trader, is offering $0.3552 per share in cash for the remaining shares, an 18 percent discount to Chemoil's last traded share price, valuing the firm at $459 million.
Chemoil's stock has more than doubled since the start of the year on expectations of a possible takeover deal and amid the recovery in oil prices. Chemoil halted trading in its shares on Tuesday.
Chemoil owns the 448,000 cubic metre (cu m) Helios oil storage terminal in Singapore, the world's top ship refuelling port, and a stake in a joint venture 100,000 cu m terminal in the world's third biggest ship refuelling port Fujairah. In India, Chemoil has a joint-venture with the Adani Group, which owns the country's largest private port in Mundra on the west coast, which is expected to see rapid growth in sales of marine fuels. The venture also has a 300,000 cu m storage terminal in the port. In the United States, Chemoil is one of the main marine fuels suppliers and the largest in Los Angeles and New York.
Japan's Itochu, through Itochu Corp and Itochu Petroleum, holds a combined 37.5 percent stake. The remaining 11.7 percent of Chemoil is in public hands
Under Singapore law, anyone buying a 30 percent stake in a company must make an offer for the rest. [15/12/09]
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