Bangkok--11 Nov--PTT
Mr. Tevin Vongvanich, Chief Financial Officer of PTT Public Company Limited (PTT), revealed that PTT via PTT Mining Limited (PTTML), the wholly-owned subsidiary of PTT International Limited (PTTI), has proposed to acquire the coal assets of Straits Resources Limited (SRL). Thus, PTT owns 100% shares in PTTI. Under the acquisition agreement, PTTML agreed to pay SRL shareholders A$ 1.72 per share or about A$ 544.1 million which equivalent to about Baht 16.6 billion. PTT will provide financial support to PTTML via PTTI. The investment was consistent with PTT’s long-term strategy to raise its exposure to high-quality coal assets with good growth prospects.
Mr. Tevin said SRL engages in metal and coal businesses; therefore, PTTML entered into an agreement with SRL to acquire 100% shares following the demerger of SRL’s metal assets from its coal assets. SRL expects to hold a shareholder’s meeting within the first quarter of 2011 to seek approval for the demerger and the acquisition schemes.
Following the demerger and the acquisition of coal assets in SRL, PTTML will obtain SRL Coal assets which comprise of A$ 50 million cash and a 40% interest in PTT Asia Pacific Mining Pty Ltd (PTTAPM). The assets owned by PTTAPM are
1. A 45.6% shareholding in Straits Asia Resources Limited which operates the Sebuku and Jembayan coal mines in Indonesia;
2. A 35% interest in a joint venture company with Far East Energy Corporation Pty Ltd relating to certain rights to carry out coal resource in Brunei; and
3. A 33.5% shareholding in certain coal deposits in the Sakoa Coal Basin in Madagascar.