Petroplus sells investment in PBF Energy
Petroplus Holdings AG has reached an agreement in principle with the Blackstone Group and First Reserve, its partners in PBF Energy Company LLC, for the sale of Petroplus’ 32.62% share of the company. The sale price is $91 million, and will result in a small gain on Petroplus’ investments in PBF to date. The transaction is subject to the execution of a definitive agreement, which is expected in the coming days. The transaction is expected to close in the fourth quarter of this year.
“I believe the decision to exit PBF is in the best interest of Petroplus’ shareholders. Opportunities for improvement and expansion of the Petroplus European refining system are both real and exciting from my perspective, “ said Thomas D. O’Malley, chairman of the board of directors of Petroplus. “These opportunities will create more long-term shareholder value, and as Petroplus’ largest individual shareholder, I am glad to see the company maintain its focus on this key mission.”
Jean-Paul Vettier, Petroplus’ CEO, offered two reasons for this decision. “First, management believes it is most important to focus the company’s resources on our core European operations, and pursue strategies to improve the competitiveness of our existing asset base. This transaction improves our flexibility and liquidity in a way that will help us achieve this goal,” he said. “Second, we have recently seen attractive opportunities emerge for growth in Europe. While I cannot be certain of success, I believe that Petroplus will be better positioned to acquire more attractive assets by concentrating on European opportunities.”
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