KUALA LUMPUR (Oct 22): Petronas Dagangan Bhd (PDB) plans to divest 100% of its indirect equity interest in PETRONAS International Marketing (Thailand) Co Ltd (PIMTCL) via PDB companies to PETRONAS Lubricants International Sdn Bhd group (PLISB) for a sale consideration of 105.73 million baht (RM14.2 million).

In a filing with Bursa Malaysia today, PDB said PIMTCL is its indirectly wholly-owned subsidiary and it will cease to be a subsidiary upon the completion of the divestment.

PIMTCL’s principal activities are marketing and distributing lubricants products in Thailand under PETRONAS’s brands such as Sprinta, Syntium and Urania, manufactured by toll-blenders in Thailand.

“The divestment is part of PDB’s portfolio high-grading exercise to rationalise non-core business,” it said, adding that PIMTCL had faced severe competition since 2012, and has been unable to make a significant contribution to PDB’s consolidated profitability.

“More importantly, this divestment will enable PDB to focus resources into areas that will create and enhance the highest value to its shareholders,” it said.

PDB added that all the expected gross cash estimated proceeds of RM14.2 million will be utilised for its day-to-day operational expenditure.

The divestment is expected to result in a loss on disposal of RM25.7 million, which translates into a reduction in earnings per share of 2.59 sen, it said.