PetroChina agrees $2.25 billion price tag for Singapore Petroleum

PetroChina Company said yesterday it will buy the 45.51% stake in Singapore Petroleum Company that is owned by Keppel Corporation for S$1.47 billion $1.02 billion. Once PetroChina receives approval, it will be required to offer all minority shareholders an exit, suggesting the total outlay for PetroChina could be $2.25 billion. This is the first time PetroChina has made a cross-border acquisition of a listed company.

Under the agreement, Keppel Corporation's wholly owned subsidiary Keppel Oil will sell its entire shareholding in Singapore Petroleum to the Chinese oil giant at a price of S$6.25 per share. PetroChina is also taking on $38.6 million of debt currently on the books of...