MOSCOW (MRC) -- Thaniland's PTT Global Chemical Public Company Limited’s (PTTGC) plans to acquire minority shares of Vinythai Public Company Limited (VNT) through a delisting tender offer, according to Kemicalimfo with reference to Chief Executive Officer, Dr. Kongkrapan Intarajang's statement to the Stock Exchange of Thailand (SET).
Through this acquisition, PTTGC aims to strengthen its tie with downstream chemicals business that is essential to Thailand’s industry, and also to expand its business to Cambodia, Laos, Myanmar, and Vietnam (CLMV) markets.
The company's Board of Director’s special meeting on 18 March 2021 has resolved to approve PTTGC to, subject to certain conditions, proceed a delisting tender offer of all common shares of VNT to delist the securities of VNT from the SET, at the offer price of THB 39 per share, which is subject to price adjustment in accordance with the laws and regulations of the Securities and Exchange Commission, Thailand.
VNT’s majority shareholder, AGC Inc., has agreed not to tender any of its majority stake in VNT through the DTO. VNT is and continues to be a core business and subsidiary of AGC after the DTO.
Following the delisting of VNT’s securities from the SET, GC together with AGC has a potential plan to amalgamate VNT and AGC Chemicals (Thailand) Company Limited.
AGC-TH”, which will become a major shareholder of AGC Chemicals Vietnam Company Limited (AGC-VN), to form a new non-listed public company. AGC will hold a majority stake in the new company.
This partnership aims to strengthen competitive position and build synergies for VNT, AGC-TH and AGC-VN, under an integrated PVC and Chlor-Alkali business operator in Thailand and Vietnam. The amalgamation will enable the new company to have a cost effective and better competitive advantage in key production facilities including 450,000 tons per year of polyvinyl chlorie (PVC), 720,000 tons per year of caustic soda and 120,000 tons per year of bio-based epichlorohydrin (ECH). After the completion of the amalgamation, the newly non-listed public company may increase its capital by issuing new share to GC via private placement.
As MRC reported earlier, in February 2021, PTT Global Chemical awarded Samsung Engineering a USD127-MM EPC contract to modify the Map Ta Phut olefins complex in Thailand. Samsung"s scope is to increase the throughput of propane for the production of propylene by building propane-propylene split and distillation towers and modify the current facilities. The project is scheduled to be completed by 2023. According to Business Korea, Samsung Engineering is currently carrying out two plant projects of PTT GC - the Olefin Project and the Propylene Oxide Project.
According to MRC's ScanPlast report, Russia's overall PVC production reached 169,200 tonnes in the first two months of 2021, down 4% year on year. All producers decreased production volumes over the reported period.
PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.