Thai PTT to acquire shares in TPI by month end

15-Nov-05

PTT's board has approved a plan to invest THB20.27 billion ($493 million) to buy a 31.5% stake in TPI. Thailand's oil and gas conglomerate PTT PCL is to make a payment for a stake in Thai Petrochemical Industry PCL by the end of this month. With this, TPI is likely to complete its plan to sell shares before a Dec. 13 deadline. The share offer is part of a restructuring proposal to reduce TPI's crippling debt. TPI will also sell 10% stake each to PTT's partners in the restructuring plan - the Government Savings Bank, Government Pension Fund, and the state-run Vayupak Fund-One.Creditors will be allocated an 8.5% stake. The remaining 20% will be sold to existing minority shareholders, bringing their holdings after the sale to 30%. Minority shareholders may subscribe for the offering of new TPI shares between Nov. 30 and Dec. 7.