PTT Global Chemical Public Company Limited’s (GC) Chief Executive Officer, Dr. Kongkrapan Intarajang, has informed the Stock Exchange of Thailand (SET) on GC’s proposed acquisition of minority shares of Vinythai Public Company Limited (VNT) through a delisting tender offer.
Through this acquisition, GC aims to strengthen its tie with downstream chemicals business that is essential to Thailand’s industry, and also to expand its business to Cambodia, Laos, Myanmar, and Vietnam (CLMV) markets.
GC’s Board of Director’s special meeting on 18 March 2021 has resolved to approve GC to, subject to certain conditions, proceed a delisting tender offer of all common shares of VNT to delist the securities of VNT from the SET, at the offer price of THB 39 per share, which is subject to price adjustment in accordance with the laws and regulations of the Securities and Exchange Commission, Thailand.
VNT’s majority shareholder, AGC Inc., has agreed not to tender any of its majority stake in VNT through the DTO. VNT is and continues to be a core business and subsidiary of AGC after the DTO.
Following the delisting of VNT’s securities from the SET, GC together with AGC has a potential plan to amalgamate VNT and AGC Chemicals (Thailand) Company Limited.
AGC-TH”, which will become a major shareholder of AGC Chemicals Vietnam Company Limited (AGC-VN), to form a new non-listed public company. AGC will hold a majority stake in the new company.
This partnership aims to strengthen competitive position and build synergies for VNT, AGC-TH and AGC-VN, under an integrated PVC and Chlor-Alkali business operator in Thailand and Vietnam. The amalgamation will enable the new company to have a cost effective and better competitive advantage in key production facilities including 450,000 tons per year of PVC, 720,000 tons per year of Caustic Soda and 120,000 tons per year of bio-based Epichlorohydrin (ECH). After the completion of the amalgamation, the newly non-listed public company may increase its capital by issuing new share to GC via private placement.
This investment of shares will drive GC’s growth in the downstream business, by allowing GC to increase substantial stake in PVC and Chlor-Alkali businesses in high-growth markets as Thailand and CLMV, and by adding value to GC’s olefins business.