Petronas to sell 80% stake in Engen
Petroliam Nasional Bhd, also known as Petronas, is putting its controlling stake in Engen Petroleum Ltd. up for sale. Engen Petroleum is the largest petroleum retailer in South Africa.
It was established yesterday that the national oil company was discussing with interested parties. "Petronas is in preliminary discussion with interested parties and is not able to comment further," a company representative said.
The 80% stake held by Petronas in Engen is largely expected to picked up by PetroSA, South Africa's state-owned oil enterprise. The rest of Engen shares are owned by Pembani Group Ltd, a Johannesburg-based private equity group.
PetroSA has long displayed its interest in procuring the stake from Petronas. Over the past few years, it had talked about entering the downstream market as a fundamental part of its corporate scheme.
PetroSA, carrying out due diligence, said it could take them 3 to 6 months before arriving at a conclusion on Engen.