TPI to auction stake in cement unit?

TPI to  auction stake in cement unit?
Published: 03 June 2005

Thai Petrochemical Industry (TPI) may sell its 30-per cent stake in cement maker TPI Polene PCL by auction, a source at TPI’s debt administrator said. 
 
The plan was one of two options and the government-appointed management team would make decision on how to sell the TPI Polene stake on June 7, the source, who declined to be identified, told Reuters. 
 
"It is possible they will decide to open an auction on the TPI Polene stake because it is fast and transparent process," the source said. The other option was to negotiate with potential buyers. 
 
TPI Polene, Thailand’s number three cement maker, is a unit of TPI, the country’s largest corporate defaulter which is restructuring $2.7bn of debt. Selling the TPI Polene stake is part of TPI’s restructuring plan. 
 
Under the plan, the offer price for the 249M shares should not be lower than THB40 each and the proceeds would be used to repay $250m debt of TPI. 
 
An offer below THB40 would require an approval from TPI’s creditors, the source said. 
The stake sale was likely to be done within two months before its parent firm completed the restructuring.