SunStar.com (Philippines): Shell considers selling cooking gas business: “Shell has received expressions of interest for the purchase of its global LPG business, Shell Gas (LPG), and has decided to review whether the sale of the business would offer the greatest value to shareholders. The review includes our LPG business in the Philippines,” said Roberto Kanapi, Shell spokesman. (ShellNews.net) 22 Nov 04
Monday, November 22, 2004
* After interested parties express interest to buy business, Shell now weighing options
* Shell says it will continue investing in the LPG business, while it studies expressions of interest by potential buyers
PILIPINAS Shell Petroleum Corp. has confirmed that it is getting offers from interested parties to purchase its liquefied petroleum gas (LPG) business, but the oil giant said no decisions have been made.
“Shell has received expressions of interest for the purchase of its global LPG business, Shell Gas (LPG), and has decided to review whether the sale of the business would offer the greatest value to shareholders. The review includes our LPG business in the Philippines,” said Roberto Kanapi, Shell spokesman.
Kanapi was reacting to reports that Shell would be divesting itself of “non-core businesses” to focus on oil and gas exploration.
Kanapi told Sun.Star that Shell Gas (LPG) is a highly valued part of the Shell Group, which has benefited from its focus on LPG.
However, with the expressions of interest, he said it was also necessary for the Group to establish whether the shareholders’ best interest lay in continuing to own LPG or in divesting.
The company said this review would likely take up to 12 months.
“The review is expected to be completed (in the) first half (of) 2005, and if this leads to a consideration to sell, this would follow the timing of the review. We do not expect a sale to be concluded before that,” the company said in a statement.
In the meantime, the company committed to continue investing in the business.
“We will continue, therefore, to build and to invest in the business, and to operate as a safe and successful global market leader. We will continue pursuing current strategies and focus on delivering the customers’ needs,” it said.
Shell promised to update its stakeholders on the progress of talks. But it said there were not expected to be any developments to report during the next six months.
Pilipinas Shell Petroleum Corp. is among the Big Three oil companies operating in the Philippines, along with Petron Corp. and Caltex Philippines Inc.
According to the Securities and Exchange Commission, Pilipinas Shell raked in P101.14 billion in revenues last year, ahead of Caltex, which reported P58.44 billion, but trailing Petron, which amassed P111.12 billion. CTL
(November 22, 2004 issue)