Petrolina acquires ExxonMobil Cyprus and takes over 68 Esso stations for €48.6m

Petrolina (Holdings) Public Limited (PHL) has announced that on 27 November 2024, its fully-owned subsidiary, MED ENERGYWISE LTD, entered into an acquisition agreement to purchase 100% of the share capital of ExxonMobil Cyprus Limited (EMCL) for €48.6 million.

The Acquisition Agreement is part of Petrolina Group's strategy to further develop its operations in the oil marketing sector within the Cypriot market.

EMCL, a subsidiary of Exxon Mobil Corporation, has been operating in Cyprus since 1955. It is engaged in the supply, distribution, and marketing of fuels through 68 stations operating under the Esso brand, offering Synergy fuels in the local market.

The financial evaluation and the Board's assessment of the fair value of the acquired company were based on a study by an independent expert, reflecting the net asset value presented in EMCL’s audited financial statements as of 31 December 2023, historical financial data, and its future prospects.

For the fiscal year ending 31 December 2023, EMCL reported a turnover of €272.4 million and net profits of €2.7 million. For 2022, the turnover was €296.7 million, with net profits of €5.4 million.

The acquisition price was agreed at €48.6 million. A 10% deposit (€4.8 million) was paid in cash upon signing the Acquisition Agreement. The remaining amount will be settled upon completion of the agreement, provided all conditions are met. The transaction will be funded through secured bank financing.

The deal is purely commercial and will be accounted for under the acquisition method. It does not involve any "designated persons" as defined under the Cyprus Securities and Stock Exchange Law of 1993 (14(I)/1993), as amended.

Completion of the Acquisition Agreement is subject to the approval of the Cyprus Commission for the Protection of Competition, to which a relevant request will be submitted.

Harris Kyriakides acted as legal advisors for PHL in the acquisition.