BASF Petronas makes RM52mil payout to settle electricity dispute with Petronas Gas
Petronas Gas said in a filing with Bursa Malaysia that the transaction was made in the ordinary course of business and has been negotiated and concluded on an arm's length basis.
"It is in the best interest of Petronas Gas, is fair, reasonable and on normal commercial terms, and is not detrimental to the interest of minority shareholders.
"The settlement is supported by business opportunities between Petronas Gas and BASF Petronas and avoids prolonged dispute resolution processes which may lead to uncertainties in revenue recognition and financial expectations," it said.
Petronas Gas and BASF Petronas had entered into a sale and purchase of electricity dated Dec 21, 1998, along with its supplementary agreements.
Petronas Gas noted that between 2018 and 2019, there were disputes between the parties arising from the electricity agreement.
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KUALA LUMPUR: BASF Petronas Chemicals Sdn Bhd is paying RM52 million as final and full settlement to Petronas Gas Bhd (PGB) after both parties entered into a settlement agreement over a dispute on electricity supply. Petronas Gas said in a filing with Bursa Malaysia that the transaction was made in the ordinary course of business and has been negotiated and concluded on an arm's length basis. "It is in the best interest of Petronas Gas, is fair, reasonable and on normal commercial terms, and is not detrimental to the interest of minority shareholders. "The settlement is supported by business opportunities between Petronas Gas and BASF Petronas and avoids prolonged dispute resolution processes which may lead to uncertainties in revenue recognition and financial expectations," it said. Petronas Gas and BASF Petronas had entered into a sale and purchase of electricity dated Dec 21, 1998, along with its supplementary agreements. Petronas Gas noted that between 2018 and 2019, there were disputes between the parties arising from the electricity agreement. - Bernama
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KUALA LUMPUR: BASF Petronas Chemicals Sdn Bhd is paying RM52 million as final and full settlement to Petronas Gas Bhd (PGB) after both parties entered into a settlement agreement over a dispute on electricity supply. Petronas Gas said in a filing with Bursa Malaysia that the transaction was made in the ordinary course of business and has been negotiated and concluded on an arm's length basis. "It is in the best interest of Petronas Gas, is fair, reasonable and on normal commercial terms, and is not detrimental to the interest of minority shareholders. "The settlement is supported by business opportunities between Petronas Gas and BASF Petronas and avoids prolonged dispute resolution processes which may lead to uncertainties in revenue recognition and financial expectations," it said. Petronas Gas and BASF Petronas had entered into a sale and purchase of electricity dated Dec 21, 1998, along with its supplementary agreements. Petronas Gas noted that between 2018 and 2019, there were disputes between the parties arising from the electricity agreement.
