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DBJ sells Petcom for J$2.3 billion

Published:Monday | May 2, 2016 | 12:00 AM

Over the next 90 days, Petroleum Marketing outfit Phoenix Fuels and Accessories has to come up with US$19 million (J$2.3 billion) to close the deal on the sale of the Petroleum Company of Jamaica (PETCOM).

The development comes after Phoenix signed an agreement with the Development Bank of Jamaica following nearly six months of negotiations.

In November 2015, Phoenix was identified as the preferred bidder.

They were chosen by the Erwin Jones-led Enterprise Team, beating  two other rival bids from Rubis Caribbean Holdings and Sol Investments Ltd.

Well-placed sources said the bids for the marketing company ranged from US$14 million to US$22 million.

There were intensive negotiations between the PETCOM negotiating team and the preferred bidder. 

The Cabinet approved the terms for the privatisation to Phoenix on February 15 2016.

Lead negotiator for Phoenix Fuels was managing director of GK Capital Management Steven Whittingham and Investment Manager, Douglas Robinson.

Sources indicate that financing will be provided by First Global Bank.