Esso Malaysia Bhd. (3042.KU) said Wednesday that San Miguel Corp. (SMC.PH) plans to acquire a 65% stake in the company for MYR614.3 million ($206.0 million), or MYR3.50 per share, as part of its expansion plan outside the Philippines.

San Miguel has signed an agreement with ExxonMobil International Holdings Inc. to buy its stake in Esso Malaysia and upon completion, acquire the remaining shares it doesn't already own in Esso Malaysia, according to the offer letter filed to the stock exchange.

The offer price of MYR3.50 per share represents a 29.3% discount to Esso Malaysia's closing price Wednesday. The stock surged 14.1% to close at MYR4.95 Wednesday following reports of the acquisition.

Separately, San Miguel has also agreed to acquire two unlisted companies--ExxonMobil Borneo Sdn. Bhd. from ExxonMobil, and ExxonMobil Malaysia Sdn. Bhd. from Mobil International Petroleum Corp.--for a total of $404.0 million, the offer letter said.

In a separate statement, San Miguel's chief operating officer Ramon S Ang said Esso Malaysia is attractive "given that there is plenty of room to move up the value chain by upgrading refinery capabilities."

"Our plan would be to upgrade the Port Dickson refinery so that it can make use of a wider variety of crudes, and produce higher-value products." Ang added.

The assets include a Port Dickson refinery with a capacity of 88,000 barrels per day, seven fuel distribution terminals and a network of about 560 service stations.

San Miguel has been diversifying over the last few years and has invested in various sectors in the Philippines including power generation and distribution, airports, toll roads and oil refinery via Petron Corp.

-By Jason Ng, Dow Jones Newswires; +603-2026-1233; jason.ng@dowjones.com

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