DCC PLC Acquisition of Shell LPG Hong Kong & Macau (6246B)
April 05 2017 - 2:00AM
UK Regulatory
TIDMDCC
RNS Number : 6246B
DCC PLC
05 April 2017
5 April 2017
DCC Energy agrees to acquire Shell's LPG business in Hong Kong
and Macau
DCC plc, the leading international sales, marketing and business
support services group, announces that DCC Energy has reached
agreement with Shell Gas (LPG) Holdings BV to acquire its liquefied
petroleum gas ("LPG") business in Hong Kong and Macau ("Shell
HK&M") based on an enterprise value of HK$1.165 billion (c.
GBP120 million). The business is one of the leading LPG businesses
in Hong Kong and is the market leader in Macau. The business is
required to be separated from the broader Shell Hong Kong
operations and the transaction requires certain regulatory consents
and operating licence approvals. The acquisition is expected to
complete before the end of DCC's financial year ending 31 March
2018.
Shell's LPG business in Hong Kong and Macau
Shell HK&M is one of the leading LPG sales and marketing
businesses in Hong Kong and Macau, where it has been selling LPG
for almost sixty years. The business provides LPG in bulk, cylinder
and autogas formats to domestic, commercial and industrial
customers.
In Hong Kong it is the market leader in supplying piped LPG to
the very large apartment complexes common in the territory. Shell
HK&M supplies the complexes through its infrastructure of bulk
tanks and piping to service the energy needs of over 100,000
households. Shell HK&M is the number three player in the
cylinder market and also supplies autogas to Shell's retail
network. The business is the market leader in the smaller Macau
market. Shell HK&M is headquartered in Kowloon and operates a
terminal and filling plant on Tsing Yi Island.
In the year ended 31 December 2016, the business supplied
approximately 74,000 tonnes of LPG and under DCC's ownership is
expected to deliver an annual operating profit of c. HK$145 million
(c. GBP15 million).
Following the completion of the acquisition, the business will
continue to operate under the Shell brand in both Hong Kong and
Macau, based on a long term brand licence agreement.
Strategic rationale
DCC Energy's strategy is to be a global leader in the sales and
marketing of fuels and related products and the provision of
services to end consumers. The acquisition of the Shell LPG
business in Hong Kong and Macau is in line with this strategy and
DCC Energy's ambition to, over time, build a significant presence
in the global LPG market. Demand for LPG is expected to grow
strongly in developing markets throughout the world, given LPG's
relative strength as a portable, clean and efficient energy source.
The acquisition of Shell HK&M will give DCC a strong presence
in a mature and stable market in Asia and, importantly, provides a
development platform in the region to build a larger LPG business
in the future.
Tommy Breen, Chief Executive of DCC plc, said today:
"The acquisition of Shell's LPG business in Hong Kong and Macau
is an exciting development for DCC and is consistent with our
ambition to build a substantial presence in the global LPG market.
The acquisition represents a further strengthening of our
relationship with Shell and gives us a strong market position in
Hong Kong and Macau. It is also DCC's first material step in
building its business outside of Europe and gives DCC a platform
for development in the growing LPG market in Asia."
For Reference:
Tommy Breen, Chief Executive
Donal Murphy, Managing Director, DCC Energy
Kevin Lucey, Head of Group Finance and Investor Relations
Telephone: +353 1 2799 400
Email: investorrelations@dcc.ie
Powerscourt (Media)
Lisa Kavanagh / Victoria Palmer-Moore
Telephone: +44 20 7250 1446
Email: DCC@powerscourtgroup.com
About DCC plc
DCC plc is an international sales, marketing and business
support services group headquartered in Dublin with operations in
Britain, Continental Europe and Ireland. DCC has four divisions -
DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental.
In the financial year ended 31 March 2016, DCC generated revenue of
GBP10.6 billion and operating profit of GBP300 million. The DCC
Group currently employs approximately 11,000 people in 15
countries. DCC's shares are listed on the London Stock Exchange and
are included in the FTSE All-Share Index and the FTSE 100
Index.
About DCC Energy
DCC Energy is the leading oil and liquefied petroleum gas
("LPG") sales, marketing and distribution business in Europe and
DCC Energy's vision is to be a global leader in the sales,
marketing and distribution of fuels and related products and the
provision of services to energy consumers. DCC Energy operates
through three businesses: LPG, Oil and Retail & Fuelcard. In
LPG, DCC Energy is market leader in Norway and Sweden, joint market
leader in the Netherlands and strong number two in France, Britain
and Ireland. DCC Energy is the market leader in oil distribution in
Britain and Sweden and one of the leading players in Austria,
Denmark and Ireland. In Retail & Fuel Card, DCC Energy is a
leading operator of unmanned petrol stations in Europe with
operations in France, Sweden, Denmark, Britain and Ireland and is
the leading reseller of fuel cards in Britain.
This information is provided by RNS
The company news service from the London Stock Exchange
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