Petrolina Holdings on Monday released a regulatory announcement stating its acquisition of the oil trading firm Silk oil.
Petrolina will pay a redemption consideration at a maximum amount of €9 million, of which € 7.3 million was paid in cash at the time of the signing of the sale agreement. Up to €1.7 million has been withheld as a guarantee amount and may be paid in whole or in part after the determination of the final fair value of the net assets and liabilities of Silk Oil in 2020.
The acquisition was completed via Petrolina’s new subsidiary PW Bunkering Services (East Med) which is 100 per cent owned by the holding on December 31, 2020. PW Bunkering Services is now sole owner of Silk Oil.
Silk Oil saw a net loss of €187,300 in 2018 on revenue of €209.3 million. For the year 2019, the company had earnings of €194.7 million and a net loss of €18,000.
The Acquisition Agreement is part of the further development of the existing operations of the Petrolina Group in Greece, the announcement said.
“Silk Oil has been active in the petroleum trade since 1988 and is based in Rhodes. It owns privately owned liquid fuel storage facilities in Crete and Samos for the use of petroleum and LPG products and maintains four branches in Piraeus, Thessaloniki, Crete and Samos through which it supplies liquid fuels and liquefied petroleum gas throughout Greece,” according to the announcement.
“It has 414 points of sale of liquid fuels and LPG throughout Greece bearing the Silk Oil brand. Silk Oil provides services to gas stations and heating oil distributors operating in Greece. In addition, Silk Oil’s operations include a network of tankers through which petroleum products are distributed throughout Greece,” the announcement said.
“The acquisition is expected to positively affect the prospects and results of the Petrolina Group due to the economies of scale and synergies that can be created. Petrolina many years of experience in the petroleum sector as well as the experience from the existing presence of the Petrolina Group in Greece.
“The financial valuation of the acquisition of the share capital of SILK OIL was based on the net asset value based on the audited financial statements of SILK OIL as at December 31, 2019, on the historical financial data of Silk Oil, as well as on the growth activity of Petrolina Group in Greece based on the business plan and prospects of Silk Oil,” the announcement said.