SINGAPORE (Oct 7): Catalist-listed lubricant manufacturer and trader United Global has sold a 40% stake in its subsidiary United Oil to Repsol Downstream Internacional, part of Spanish oil giant Repsol for US$46.5 million ($64 million).
Upon completion of the deal, United Oil will become a jointly controlled entity under Repsol, for the latter to expand into Southeast Asia. With net proceeds of some US$36 million, United Global is now on the lookout for investments and acquisitions of its own, and wants to venture beyond its existing markets in Singapore, Malaysia and Indonesia, says Jacky Tan, the company’s CEO and executive director, in an interview with The Edge Singapore.
Under the terms of the deal announced on Sept 30, Repsol will be paying up to US$46.5 million in cash for the stake in United Oil. The payment will be split into two tranches: an initial US$36.5 million, while the remaining US$10 million will be payable depending on revenue-related earn-out targets for FY2023.