Thailand’s PTT transfers holdings in petchem subsidiaries to PTTGC

February 16, 2017 | Natasha Alperowicz

Energy firm PTT (Bangkok, Thailand) is consolidating its petrochemical interests into its 48.9%-owned affiliate PTT Global Chemicals (PTTGC). PTTGC is acquiring some or all of PTT’s shares in six subsidiaries worth 26.3 billion baht ($751.7 million), according to PTTGC CEO Supattanapong Punmeechaow. The move aims to bring all petrochemical-related businesses under one umbrella to ease operations and improve efficiency.

The PTT board earlier this week approved the plan to transfer the six subsidiaries to PTTGC, which will make it the main chemicals arm of PTT. Most of the six units were joint ventures (JVs) involving PTT because PTTGC, at the time of the JVs’ formation, was too small to be the partner. All of the transactions will be concluded by October this year. The six companies are expected to generate up to 2.4 billion baht/year in extra revenue for PTTGC, according to Supattanapong.

PTTGC may also transfer one of the newly acquired companies to Green Global Chemical, which is due to be listed on the Stock Exchange of Thailand by the middle of this year.

Under the approved plan, PTTGC will acquire a 41.44% stake in HMC Polymer; a 50% share each in PTT Asahi Chemical and PTT MCC Biochemical; 40% in PTT Maintenance and Engineering, up from 60%, giving PTTGC 100% control; and an additional 50% each in PTT Polymer Marketing and PTT Logistics, giving PTTGC full control of these two firms.