DLA Piper has offered legal counsel to Esso Thailand in connection with a refinancing loan agreement worth THB 20 billion. The agreement involves six prominent banks from Thailand, Japan, and China. This strategic move enables Esso Thailand to restructure its existing shareholder loan from ExxonMobil. The initiative is aligned with ExxonMobil Group’s overarching strategy to divest its controlling stake in Esso Thailand to Bangchak Corporation Public Company Limited (BCP).
Included in this transaction is the transfer of an ownership interest in the Siracha Refinery, along with Thailand’s network of Esso-branded retail outlets and select distribution terminals.
Based in Bangkok, Esso Thailand boasts over 125 years of operation within the country and maintains an extensive network of product distribution terminals nationwide. The company is engaged in the production and marketing of petroleum and petrochemical products under the well-recognized Esso brand.
BCP, a Thai conglomerate focused on petroleum and energy, is making a substantial investment in Esso Thailand. This move not only strengthens energy security but also balances long-term strategic objectives with considerations of energy affordability and sustainability.
Overseeing the transaction from DLA Piper’s end is Waranon (Warren) Vanichprapa, stationed in Bangkok. Warren serves as the leader of DLA Piper Asia’s Finance, Projects & Restructuring practice and holds the position of Country Managing Partner for DLA Piper Thailand. In executing this deal, he received support from senior associate Pattadon Tejapaibul and associate Sarita Prukaroon.
Warren expressed his satisfaction with the deal, stating, “We were honored to be entrusted by Esso Thailand to provide assistance for this transaction, building upon our prior experience in aiding BCP with their acquisition financing. This transaction underscores the robust capabilities of our banking and finance team, particularly in seamlessly facilitating comprehensive acquisition financing – encompassing both the acquisition itself and the financial aspects. Our broad financial competencies, spanning real estate, acquisitions, projects, receivables, equipment, ECA, debt trading, and financial restructuring, empower us to offer unparalleled guidance to our clients, while comprehending the nuances of diverse businesses engaged in similar transactions.”