Chemoil Plans SGX Delisting

by Ship & Bunker News Team
Wednesday February 26, 2014

Chemoil Energy Limited (Chemoil)'s majority shareholder, Glencore Xtrada Plc (Glencore), plans to take the bunker supplier public, and the companies have filed for a voluntary delisting from the Singapore Exchange (SGX).

Glencore already owns 89.2 percent of Chemoil through subsidiary Singfuel Investment Pte. Ltd (Singfuel).

The companies said going private would eliminate expenses associated with being a listed company and give management greater flexibility to develop the business and "explore opportunities" with less cost, regulatory restrictions, and compliance issues.

They also said Chemoil has never used the exchange for fund-raising and does not anticipate a need to do so.

With only 10.39 percent of the company's issued shares now free-floating, barely above the 10 percent required by the exchange, trading liquidity has been low in recent years.

The proposal offers minority shareholders $0.40 per share, a 29 percent premium over the most recent trading price of the stock.

Chemoil is in the process of expanding its U.S. East Coast operations while its Indian joint venture, Chemoil Adani, recently added new physical supply operations in Chennai.

Ship & Bunker News Team
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