MENU

Caltex Australia Limited pays $115 million for a stake in SEAOIL

The Caltex Australia Limited (ASX: CTX) share price will be one to watch on Friday after it made a positive announcement after the market closed.

What happened?

This afternoon the fuel retailer announced that it has signed a definitive agreement forming a strategic partnership with SEAOIL Philippines.

SEAOIL is the leading independent fuel company in the Philippines and fourth-largest market participant.

According to the release, Caltex will acquire a 20% ownership interest in SEAOIL and supply fuel to its retail network via Caltex’s fuel sourcing and shipping business, Ampol Singapore.

This transaction is expected to support SEAOIL’s growth strategy, which aims to double the company’s retail network and terminal storage capacity over the next five years.

The 20% equity interest is being acquired for approximately $115 million at prevailing exchange rates.

The investment will be funded through existing debt facilities and is expected to be EPS accretive and generate returns above cost of capital in its first full year of ownership.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.