BP and Lembaga Tabung Angkatan Tentera (LTAT) announced today that they have reached an agreement for LTAT to purchase BP's 70 per cent shareholding in the BP Malaysia Sdn Bhd fuels business which comprises 240 service stations, a modern fuel terminal and two joint- venture automated LPG bottling plants.
LTAT will have 100 per cent ownership of the business once the deal is completed and the necessary regulatory approvals are obtained. LTAT, the investment arm of ex-servicemen pension fund, has existing businesses covering plantation, property, manufacturing, trading, and financial services.
The two parties said they hoped to complete the transaction during the second quarter of 2004 and the business will be renamed. They reaffirmed their commitment to ensure the continuity of the same level of service at all their service stations nationwide, and uninterrupted supplies of LPG and commercial fuels to customers.
"LTAT is pleased to have the opportunity to acquire such a quality company with good assets and a strong track record. BP Malaysia Sdn Bhd has also excellent management and staff, and significant potential for growth. LTAT has always viewed its initial 30% as a good investment with a strong partner. With this acquisition, LTAT will mobilize its plans including those which will help the PROSPER and PERNAMA programs. In essence, we look forward to continuing the trend of profitable growth and value enhancement." said Tan Sri Lodin Wok Kamaruddin, Chief Executive Officer of LTAT.
"We are delighted to have reached this agreement with our existing partner in the business," said Datuk Peter Wentworth, Chief Executive Officer of BP in Malaysia. "In particular we are pleased that LTAT have said that they expect to retain the majority of the staff who have worked hard to make the business so successful."
BP's decision to sell the Malaysian fuels business is consistent with its global strategy of concentrating on markets and segments where it can build a significant presence and it has no impact on BP's other activities in Malaysia.
BP will continue to focus resources on its Malaysian Chemicals, Lubricants and Solar Power businesses which are competitive, world-class assets. These comprise four petrochemical operations, an ISO9002 certified lubricant blending plant and a solar manufacturing plant.
