National Petrochemical and Thai Olefins to merge

05-Jul-05

The boards of Thailand's fourth-largest petrochemical maker National Petrochemical Plc and Thai Olefins Plc have agreed to a merger of the companies. This merger will lead to economies and help to boost production and reduce costs. National Petrochemical will need to divest its 1.03% stake in Thai Olefins before the merger. Under the merger plan, one existing share of National Petrochemical will be swapped for 1.57 shares in the new entity, while one Thai Olefins' share will be swapped for 0.78 shares. Shareholders of Thai Olefins and National Petrochemical will meet on August 11 to review the merger. The plan will be implemented within six months of receiving shareholder approval. PTT will purchase shares of National Petrochemical and Thai Olefins from stockholders who object to the combination. PTT shareholders will consider further possible investments in the two affiliates in an extraordinary meeting on August 10. PTT Plc, that owns 45% of Thai Olefins and a direct 38% stake in National Petrochemical, plans to use the combined company to manage and operate businesses in gas-based olefins, including olefins derivatives, and to help it compete in the region. PTT is also in the process of merging its wholly owned Rayong Refinery with Star Petroleum Refining, 64% owned by Chevron, to create Thailand's biggest refinery to cut costs.