Bangkok--5 Jun--PTT
The 40% acquisition in HMC by PTT helps the Thai national energy firm to immediately expand into the down stream petrochemical business with concentration on the production of the Specialty Grade of Propylene.
Mr. Prasert Bunsumpun, President of PTT Public Company Limited (PTT), revealed that PTT signed the Share Acquisition Agreement and the Shareholders Agreement to acquire 40% stakes in HMC Polymers Co., Ltd (HMC) via the US$250 million purchase of capital increase shares and existing shares of HMC. The move helped PTT to become the major shareholder in HMC. The plan was inline with PTT’s business strategy to immediately expand into the down stream petrochemical business, especially in the Specialty Grade Products. In addition, it helped boost the value of propane which was the product of PTT Gas Separation Plant.
Thus, with PTT as a new shareholder, HMC would have a stronger financial status. The new fund raised from the issuance of its capital increase shares will be used for the 300,000-ton/year expansion project of polypropylene (PP) Production. The latest Spherizone Technology from Basell, another shareholder of HMC, will be adopted for the PP Production Project; therefore, this will enable HMC to step up as one of PP leading producer in the region.
HMC operates PP Production Plant since 1989 with the current production capacity at 420,000 tons per year of which mostly is the production of PP Specialty Grade. HMC has been successful with its operation, marketing, and good earnings in which in 2005, the company recorded the net profit of Bt3.02 billion.
PTT Corporate Public Relations Department