TOKYO Aug 14 Japanese refiner TonenGeneral
Sekiyu KK, in which U.S. oil major Exxon Mobil
has a stake, has dropped plans to sell into the market stock
held by its 99-percent-owned unit in a bid to raise funds, its
president said on Tuesday.
The unlisted subsidiary holds 200 million shares in its
parent TonenGeneral, Japan's second-biggest refiner, and
TonenGeneral had said in January selling up to 50 percent of the
holdings was among the options it was considering.
But that was no longer an option, TonenGeneral President Jun
Mutoh said on Tuesday, adding that the company felt that
planning a stock offering would not improve shareholder value.
"We want to use those shares to attain our business
objective or business strategy," he told reporters at the
release of second-quarter earnings. "We are not considering
using them for public stock offering to raise funds."
Options for using those shares include pursuing new growth
opportunities or strategic partnerships to improve corporate
value, he added.
The stock holding is a result of the company's move this
year to buy back a $4 billion controlling stake from Exxon, at a
time when domestic oil demand is shrinking and Japanese refinery
products are unable to compete with rivals located closer to
Exxon Mobil's stake in TonenGeneral fell to 22 percent from
50 percent on June 1 after the transaction.