Petroleum Company of Jamaica privatized

The Development Bank of Jamaica announced yesterday, that the Petroleum Company of Jamaica Limited (Petcom) a subsidiary of the Petroleum Corporation of Jamaica had been acquired by Phoenix Fuels & Accessories Limited for J$2.3 billion (US$19 million).

The operation includes 24 Petcom-branded service stations and 14 liquid petroleum gas-filling plants country-wide.

The chief executive of Development Bank of Jamaica (DBJ) Milverton Reynolds said Monday that the agreement for the acquisition of Petcom by Phoenix Fuels, was signed on April 29.

“The proceeds of the sale of Petcom, a wholly owned subsidiary of the Petroleum Corporation of Jamaica (PCJ) will involve the transfer of 100 percent of the shares of Petcom and real estate assets owned by the PCJ but used or operated by Petcom to the purchaser,” the DBJ said in its announcement.

The DBJ noted that “after intensive discussions between the Petcom negotiation team and the preferred bidder, Cabinet approved the final negotiated sale terms for the privatization of Petcom to Phoenix Fuels & Accessories Limited on February 15, 2016.”

The Petcom privatization opportunity was advertised by the DBJ from April 26, 2015, and the bid submission deadline was extended twice from June 30, 2015 to July 14, 2015 and subsequently to August 18, 2015. Following evaluation of the bids, Phoenix Fuels & Accessories was selected as the preferred bidder in November 2015.

Closing is expected to take place within 90 days of the date of the agreement.

Source: Jamaica Observer