Malaysian state-oil company, PETRONAS has been criticized by the Malaysian opposition party for purchasing the stakes in Progress Energy at almost double the market price.
Rafizi Ramli, the opposition party strategic director has questioned the move made by PETRONAS started in 2012 for the takeover of Progress Energy in Canada. The multi-billion dollar takeover ensures that PETRONAS secures the rights for shale gas in Canada. The shale gas hyped has driven the natural gas in United States and Canada to shoot up recently but price has since stabilized. The deals was likely made on the basis of high natural gas price and a for a significant premium above the share price. PETRONAS has previously indicated that the premium was necessary to counter a bid from another company for Progress Energy.
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