Siam Cement to sell stake in PTT Chemical to fund expansion

Siam Cement to sell stake in PTT Chemical to fund expansion
Published: 08 December 2010

Siam Cement said it will sell a 15.6 per cent stake in PTT Chemical Pcl for THB33bn (US$1.1bn) as Thailand’s third-biggest publicly traded company by market value seeks funds for domestic and overseas expansion.

Siam Cement will sell 236 million shares of PTT Chemical at THB140, booking a gain of about 8.8 billion baht in the fourth quarter, the company said in a regulatory filing today. That was 9 percent less than PTT Chemical’s closing price yesterday.

Siam Cement, controlled by King Bhumibol Adulyadej’s asset management arm, has built new plants and bought rivals in countries including Vietnam, Cambodia and Malaysia to bolster growth. Demand for Siam Cement’s petrochemicals, paper and cement has increased as economic growth in China and the rest of Asia spurs sales of cars, electrical appliances and other consumer products.

“The proceeds will provide Siam Cement financial resources to accelerate its expansion and acquisition in the region,” Rattana Leenutaphong, an analyst at IV Global Securities Pcl in Bangkok, said.