San Miguel Energy Corporation (SMEC) is planning to cement this year its acquisition of the 50.1 percent majority shares of Sea Refinery Holdings B.V. of hedge fund Ashmore group in Petron Corporation, by exercising an option contained in an agreement it entered into with the British firm.

The two-year option pact inked by the parties will lapse December this year, hence, it is already decision time for SMEC to firm up its investment plan in the country’s largest oil firm.

“I think we might exercise the option this year…to buy 51% and do a tender offer,” SMC president Ramon S. Ang told reporters in a press conference.

Ashmore’s shareholdings in Petron were valued at P32.2 billion or P6.85 per share. The venture capital firm’s entry into Petron was via its acquisition of Saudi Aramco’s 40% equity; and eventually, PNOC’s remaining 40 percent shares in the company.

Market sources noted that reports on SMC’s plan to exercise its acquisition option have been driving up Petron shares. “The acquisition price will be the same,” he said, referring to the value of the shares that Ashmore previously bought from divesting shareholders.

Ang indicated to media that they will continually derive value-added prospects from existing assets of the oil company; including plans to sell the towering Petron Megaplaza at Gil Puyat Avenue.

The oil firm’s acquisition of a petrochemical company is also expected enhancing revenue streams for the company.

“We bought Petrocorp because this is where we will process all by-products from (Petron refinery’s) PFCC (petro-fluidized catalytic cracker), so we will produce PP (polypropylene),” Ang said.

He explained that the PP output will in turn be used “for the production of plastic crates and palettes, among others.”

An eventual synergy is likewise expected between the petrochemical venture and San Miguel’s food business, primarily on the latter’s packaging needs.

“It will be intended for domestic market. It will be a captured market, because the production can be used for San Miguel packaging,” Ang stressed.