Petronas Paid 90% More for Progress Energy Shares Compared to the Actual Price

PETALING JAYA, 20 Dec: Parti Keadilan Rakyat (PKR) claims that Petronas paid twice as much for the purchase of Progress Energy shares and their shares has remained stable at C$11 since 2008.

The C$22 was offered to them for the purchase, which led to the total being 90 percent more expensive than the last time the stock was traded.


The PKR Strategy Director, Rafizi Ramli, said that the Progress Energy share price has only jumped one fold after Petronas announced to pay the high price.

Rafizi, who was a former accountant for Petronas, said that what is more confusing is the price increase made by Petronas was on grounds that there was another ‘mystery company’ that also offered a high price.

“Bloomberg reported that Petronas offered to by Progress Energy shares at C$22 per share, 90 percent more expensive that the last time the stock was traded in the market, according to a report dated 27 July 2007.

“The identity of this (mystery) company remains a secret and until now, the question remains unanswered about which company caused Petronas to raise the bid to pay such a high price,” he said in a press conference today.

Rafizi, who is also the Member of Parliament for Pandan, said that the question was posed but the gas price in North America fall sharply.

He said that the Progress Energy share price has not changed and is at the rate of C$11, when the price of gas surged around 2008 to 2010.

He said, what was more surprising was when the giant companies like Shell also withdrew from bidding because the price offered b the mystery company was reportedly lower than the price offered by Petronas.

Therefore, Rafizi will write a complete report to the former Prime Minister, Tun Dr Mahathir Mohamad and the former Chief Editor of the New Straits Times Group (NSTP), Datuk A.Kadir Jasin, to help obtain clarification from Petronas and the Prime Minister, Datuk Seri najib Razak.

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