Petronas Seeking Deal Ideas for $23 Billion Stock Portfolio


Petroliam Nasional Bhd. has asked a number of banks to submit proposals for what it ought to do with stakes in its Kuala Lumpur-listed companies, according to people with knowledge of the matter.

The state-owned oil and gas major could explore secondary share placements or issuing exchangeable bonds, said the people, who asked not to be named as the information is private. Petronas, as the company is known, could choose the banks to help with the planned deal as early as this month, they said.

Deliberations are still early and there is no guarantee that Petronas will proceed with a transaction, said the people. A representative for Petronas declined to comment.

Petronas owns stakes in five listed companies on the local stock exchange, for a total market value of about $22.8 billion as of Nov. 16, according to data compiled by Bloomberg:

CompanySectorPetronas stakeValue (as of Nov. 16)
KLCCP Stapled GroupReal estate75.4%$2.6 billion
MISC Bhd.Shipping57.6%$4.8 billion
Petronas Chemicals Group Bhd.Petrochemical manufacturing and distribution64.4%$8.4 billion
Petronas Dagangan Bhd.Downstream energy retail and marketing63.9%$3 billion
Petronas Gas Bhd.Natural gas transportation51%$4 billion

It is unlikely that Petronas would consider reducing any of its stakes below 50%, one of the people said.

The potential move comes after the state-owned company raised 6 billion ringgit ($1.5 billion) last year by cutting stakes in Petronas Dagangan., Petronas Gas and MISC. The selldowns ranked among Malaysia’s biggest-ever block trades, according to data compiled by Bloomberg. A Petronas exchangeable bond issue would be a first for the company.

Petronas approved an additional 10 billion ringgit dividend to the government to help fight the Covid 19 pandemic, according to an emailed statement. The company, which had committed to a 24 billion ringgit dividend to the state in 2020, said the extra payout will be made by the end of November.

Shares in several of the companies rose following the Bloomberg News report. Petronas Dagangan shares climbed as much as 3.1%, touching their highest intraday level in more than a month. KLCCP Stapled Group rose 1.4%, its first gain in four days, while Petronas Chemicals Group advanced as much as 1.5%.

©2020 Bloomberg L.P.

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