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Joint venture partners Singapore Petroleum Company Limited (SPC) and Eni International B.V. (ENI) have sold a combined 55 percent stake in lubricants manufacturer ItalSing Petroleum Company Pte Ltd. (ItalSing) to Nippon Oil (Asia) Pte Ltd..

The newly-acquired majority stake in Italsing, which also produces lubricants for the marine industry, will pave the way for Nippon Oil to expand lubricant sales in Southeast Asia.

SPC and ENI will each continue to hold 22.5% in ItalSing after the sale.

Nippon Oil, together with SPC and ENI will continue to use the ItalSing facilities to manufacture and blend lube oils for the local as well as overseas markets.

In a statement, SPC said the divestment of its 27.5% stake is for a cash consideration of S$8.025 million.

"SPC's divestment of the stake takes into account the synergies and benefits that Nippon Oil will bring to the enlarged enterprise and is on a willing buyer, willing seller basis," SPC said.

SPC's original investment of 50.0% interest in ItalSing was approximately S$6.0 million. SPC said the transaction is not expected to have a material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.

Commenting on the transaction, SPC Chief Executive Officer Koh Ban Heng said, "We welcome Nippon Oil as our partner in lubricant blending and development. With Nippon Oil's global lubricant networks and markets, ENI and SPC look forward to working with Nippon Oil to create and enhance the value of our joint investment in ItalSing."

With the inclusion of Nippon Oil as a shareholder, ItalSing will be changing its name to ENEOS ItalSing Pte Ltd.