THAI PT plans US$571 mln spend to stabilise share price

24-Nov-08

State-controlled PTT's shares have dropped 60% in the last 12 months. In the wake of the global financial crisis, Thailand's largest energy firm plans to spend up to US$571 mln (20 bln baht) in an effort to stabilise its share price. This includes 5 bln baht already spent by PTT to buy its shares through an energy fund. The remaining 15 bln baht may be used to buy back shares in PTT or its subsidiaries. The company is studying a plan to buy back shares in the stock market, the timing of which will depend on how the Thai bourse relaxes rules on share buyback plans to encourage listed companies to buy back their own shares. PTT is Thailand's biggest listed company, valued at US$12 bln, and it runs the country's gas pipeline monopoly and controls more than 30 petroleum gas exploration, petrochemical and refinery businesses. Its major subsidiaries include PTT Exploration and Production PTTE.BK, PTT Chemical PTTC.BK and PTT Aromatics and Refinery PTTAR.BK.