The government Friday signed an agreement finalizing the sale of its 40-percent stake in oil refiner and retailer Petron Corp. to a unit of British investment fund Ashmore Group for P25.7 billion.

The share-purchase agreement officially transfers 3.75 billion shares held by state-owned Philippine National Oil Co. (PNOC) in Petron to SEA Refinery Corp.

The government expects to receive the payment of P25.7 billion before yearend, well ahead of the allowable 60-day payment period under the agreement. It is expected to receive a net of P21 billion after deducting P4.4 billion that will go to PNOC and the standard advisory and brokerage fees and charges.

Under the deal, SEA Refinery will acquire the government?s shares in Petron at P6.85 each, a 34-percent premium on Petron?s closing price of P5.10 on Friday.

The price is also five percent higher than SEA Refinery?s acquisition price of P6.531 a share for Saudi Aramco?s 40-percent shareholding in Petron earlier this year and for 11 percent from minority shareholders that availed themselves of a subsequent tender offer.

The national government intends to use the proceeds of the sale for economic pump-priming activities starting next year.

With the new acquisition, the Ashmore group will have about 90 percent in Petron, but it intends to sell a 50.1-percent block to beverage and food group San Miguel Corp.

Ashmore is represented locally by Roberto Ongpin, a former trade minister.

PNOC was represented at the signing ceremony by its president, Antonio Cailao. SEA Refinery was represented by board member Craig Webster. Also present were PNOC?s financial and legal advisory team led by Reynaldo David, president of state-owned Development Bank of the Philippines.

Several sources have suggested that Ashmore?s purchase Friday was made possible by a deal Ashmore struck with San Miguel president Ramon Ang, who they say provided the financing for the acquisition.

After the deal, San Miguel will acquire a 51-percent stake in SEA Refinery ? giving it a dominant, if layered, ownership position in the country?s biggest petroleum firm.

Reached for comment Friday, Ang confirmed that San Miguel would acquire a majority stake in SEA Refinery ?next week.?

Ang said: ?It makes sense for San Miguel because they can unlock Petron?s values when they control a 90-percent stake. The company has so many parts that they can spin off, disassemble, or combine.? With a report from Michelle V. Remo; edited by INQUIRER.net