We have approved the sale of Nansei Seikyu (NSS)
At a meeting held on Monday, our Board of Directors approved the sale of 100 percent of our interests in Nansei Seikyu (NSS) to Taiyo Oil Company.
NSS is a company located on the island of Okinawa, Japan, and is wholly owned by Petrobras International BRASPETRO - PIB BV. It has a refinery with a processing capacity of 100,000 barrels of oil per day, 36 tanks that can store 9.5 million barrels of oil and oil products, in addition to three piers for vessel loading and unloading and a monobuoy. The refinery and the monobuoy are currently hibernated. By providing terminal services, NSS serves about half of the Okinawa market.
Taiyo is a Tokyo-based privately held oil product import, export, refining, and trade outfit. It owns a refinery and eight oil and oil product terminals in Japan. The company also manufactures, processes, and trades petrochemical products.
NSS' sale value is $129,285,000, a price to be fully paid at closing, which is expected for December 2016.
The sale of NSS was made through a competitive process, and the transaction price was evaluated by three financial institutions based on two fairness opinions and a valuation report.
This operation is part of our Divestiture Plan and is aligned with the Company's Strategic Plan.
Transaction completion is subject to certain customary conditions, including approval by the relevant regulators.