PTT to buy 30 per cent of TPI

PTT to buy 30 per cent of TPI
Published: 04 May 2005

PTT Plc said it planned to buy 30 per cent of Thai Petrochemical Industry (TPI) at Bt3.30 per share, more than 65 per cent below the current market price.   PTT, which is among the potential buyers of shares in TPI - the country’s largest corporate debt defaulter - informed the Stock Exchange of Thailand of the planned purchase price yesterday evening.  

TPI, which operates Asia’s largest petrochemicals complex, is restructuring US$2.7 billion (Bt107 trillion) of debt, which involves tie-ups with new partners, including the Government Pension Fund and PTT.   Under the debt plan, TPI will sell about 12 billion new shares and issue about 6 billion old shares in a debt-to-equity swap. The plan also involves a capital reduction and the sale of TPI’s stake in cement-maker TPI Polene.