LTAT
buys BP's shareholding in Malaysian fuels business
Posted: 2 March 2004
BP and Lembaga Tabung Angkatan Tentera (LTAT) announced today that
they have reached an agreement for LTAT to purchase BP's 70 per
cent shareholding in the BP Malaysia Sdn Bhd fuels business which
comprises 240 service stations, a modern fuel terminal and two joint-
venture automated LPG bottling plants.
LTAT will have 100 per cent ownership of the business once the
deal is completed and the necessary regulatory approvals are obtained.
LTAT, the investment arm of ex-servicemen pension fund, has existing
businesses covering plantation, property, manufacturing, trading,
and financial services.
The two parties said they hoped to complete the transaction during
the second quarter of 2004 and the business will be renamed. They
reaffirmed their commitment to ensure the continuity of the same
level of service at all their service stations nationwide, and uninterrupted
supplies of LPG and commercial fuels to customers.
"LTAT is pleased to have the opportunity to acquire such a
quality company with good assets and a strong track record. BP Malaysia
Sdn Bhd has also excellent management and staff, and significant
potential for growth. LTAT has always viewed its initial 30 per
cent as a good investment with a strong partner. With this acquisition,
LTAT will mobilize its plans including those which will help the
PROSPER and PERNAMA programs. In essence, we look forward to continuing
the trend of profitable growth and value enhancement." said
Tan Sri Lodin Wok Kamaruddin, Chief Executive Officer of LTAT.
"We are delighted to have reached this agreement with our
existing partner in the business," said Datuk Peter Wentworth,
Chief Executive Officer of BP in Malaysia. "In particular we
are pleased that LTAT have said that they expect to retain the majority
of the staff who have worked hard to make the business so successful."
BP's decision to sell the Malaysian fuels business is consistent
with its global strategy of concentrating on markets and segments
where it can build a significant presence and it has no impact on
BP's other activities in Malaysia.
BP will continue to focus resources on its Malaysian Chemicals,
Lubricants and Solar Power businesses which are competitive, world-class
assets. These comprise four petrochemical operations, an ISO9002
certified lubricant blending plant and a solar manufacturing plant.
About BP
BP is a fully integrated oil, gas & petrochemical company ranking
amongst the world's top three.
BP began its operations in Malaysia in 1964 and has evolved to
become one of the major oil & petrochemical companies in the
country.
In the petrochemicals segment, BP produces and markets Ethylene,
Polyethylene, Acetic Acid and Purified Terephthalic Acid (PTA).
BP is looking to expand the petrochemicals segment and intends to
grow the assets on the East Coast to keep them world-scale and competitive.
In the lubricants segment, BP produces and markets lubricants under
the Castrol, BP and Duckhams brands. BP is market leader with approx.
30 per cent market share.
In the solar segment, BP is partner in a joint venture manufacturing
solar panels and is a major supplier to the telecommunications industry
and rural electrification.
BP Malaysia Sdn Bhd's net asset value is approx. US$160m. The company
has a turnover of approx. US$500m and employs 250 staff.
Further more information see www.bp.com
Posted by Richard Price,
Editor Pipeline Magazine
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