Bangkok Bank to lend up to 32 billion baht to Bangchak,
Bangkok Bank to lend up to 32 billion baht to Bangchak, as part of the funding to purchase Esso (Thailand) shares
Bangkok Bank provided financial support of up to 32 billion baht to Bangchak Corporation Public Company Limited (“Bangchak”) to acquire Esso (Thailand) Public Company Limited (“ESSO”)’s shares. Bangchak is confident that this share acquisition will strengthen Thailand’s energy security, enhance the company’s competitiveness and increase energy accessibility to consumers.
Bangkok Bank President Chartsiri Sophonpanich said the Bank and Bangchak signed the Facility Agreement to provide a long-term loan of up to 32 billion baht to Bangchak for the acquisition of ESSO shares, 32 billion baht includes the funds used for acquisition of ESSO shares from ExxonMobil Asia Holding Pte. Ltd., and funds used for the Mandatory Tender Offer for the remaining ESSO shares.
“Bangkok Bank is pleased to provide the financial support to Bangchak for the share acquisition transaction, a historic record for Thailand’s energy industry. The Bank believes this deal will increase Bangchak’s businesses capability and enhance the country’s energy security. As a “trusted partner”, Bangkok Bank is ready to provide further support to Bangchak in the future to foster mutual growth,” said Mr. Chartsiri.
Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, stated that the company is pleased to receive financial support from Bangkok Bank to acquire ESSO shares. This financial support plays a significant role to drive Bangchak’s strategic plan whereby Bangchak will acquire 65.99% of shares in ESSO from ExxonMobil Asia Holding Pte. Ltd., as specified in the Share Purchase Agreement timeline and will launch a tender offer for the remaining shares of ESSO in accordance with the legal timeframe. In addition to the Bangkok Bank loan, Bangchak will also use its own source of funds for the transaction which is expected to be completed by the end of 2023.
“I would like to sincerely thank Bangkok Bank for trust in Bangchak’s potential and providing strong support throughout the process from the beginning to the closing of this deal. Bangchak is pleased to have Bangkok Bank as our business partner in this crucial landmark in the history of the Bangchak Group and the Thai energy business. As a leader in energy transition with businesses in 10 countries around the world, we are committed to provide sustainable business innovation in harmony with the environment and society. The funding supported by Bangkok Bank will ensure enhanced energy security for the country and strengthen the company’s businesses. At the same time, it also makes it more convenient for consumers to access various products and services. We shall diligently and steadfastly develop and move forward with our vision of “Crafting a Sustainable World with Evolving Greenovation”.
