PTT to sell remaining shares in Bangchak Petroleum to Thailand’s Social Security Fund

Thailand’s Social Security Fund will purchase PTT Plc’s remaining 12% stake in Bangchak Petroleum Plc, the state majority-owned oil refiner and retailer, following the sale earlier of PTT’s 15% stake to the state-run Vayupak Fund.

“It is the government’s policy to dilute PTT’s monopoly of the oil refinery business,” said finance permanent secretary Rangsan Sriworasat, who is also a member of PTT’s board of directors.

PTT is a major shareholder in five of Thailand’s six refineries. It also plans to spin off its entire 36% share in Star Petroleum Refinery Co., a joint venture with Caltex, which owns the remaining 64% stake.

Following the sale, Bangchak’s status will revert to being a state-owned company. The Finance Ministy sold its 25% share to PTT in 2001, which made PTT the majority with a 27% stake in Bangchak.

These latest transactions would make the Finance Ministry the direct owner of Bangchak through its 37% stake.

PTT also will sell PTT Utility Plant, a co-generation gas-fired power plant near Bangchak’s oil refinery complex, to Bangchak. The 25-megawatt power plant is worth THB 1.33 billion (USD40 million).

PTT expects to gain THB 10 billion (USD307 million) in cash from these sales, according to PTT Chief Financial Officer Wirat Uanarumit.

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