AnAn unit proposes acquisition of French petrol products distributor for 4m euros

A UNIT of fuel oil trader AnAn International on Thursday proposed to acquire Orceyre, a French distributor of refined petroleum products, for about four million euros (S$6.3 million), the mainboard-listed company said in a bourse filing late on Friday.

The unit, Dyneff, is a wholly-owned subsidiary of Rompetrol France, which is in turn 51 per cent owned by AnAn International. Consideration for the proposed acquisition will be financed through internal resources of the Rompetrol group, AnAn said.

The seller is not related to AnAn International, and none of its directors, substantial shareholders and/or their respective associates has any interests, direct or indirect, in the seller.

Orceyre distributes its products - including diesel, gasoline, and heating oil - to professionals and private individuals through a small fleet of mid-sized vehicles (from seven to 15 tonnes) and three petrol stations. Its total annual deliveries are around 22,000 cubic metres of oil products, AnAn said. 

Orceyre's net tangible asset value and book value as at Dec 31, 2019 were estimated at around 2.2 million euros each. 

AnAn said the proposed acquisition was made as part of a five-year strategic plan implemented by the Rompetrol group. This strategic plan includes investments in two major types of operations - new petrol stations on French motorways, and the acquisition of companies or assets specialised in the distribution of refined oil products.

"The objective is to extend the Rompetrol group's geographical coverage of oil products distribution, and the proposed acquisition was made in furtherance of such objectives," AnAn said.

The closing for the proposed acquisition is subject to shareholders' approval, or a waiver by the Singapore Exchange from the requirement to obtain shareholders' approval.

Shares of AnAn International were trading at 6.9 Singapore cents as at 9.55am on Monday, up 0.5 cent or 7.8 per cent.