PTT Seeks Bigger Role in Thai Industrial Base With Glow Energy Deal -- Update
20 Juin 2018 - 10:17AM
Dow Jones News
By James Hookway
BANGKOK--Thai energy company PTT PCL (PTT.TH) is buying local
power generator Glow Energy PCL (GLOW.TH) from France's Engie SA
(ENGI.FR) in a deal that could be worth more than $4 billion, as it
attempts to carve out a larger role in rebooting Thailand's
industrial base.
A PTT unit, Global Power Synergy, said in a statement Wednesday
that it would initially pay the equivalent of $2.98 billion for
Engie's 69% stake in Glow Energy before making a tender offer for
the remaining shares. Global Power said it intends to finance the
acquisition through loans and new stock and bond issues. PTT shares
fell initially. At the close of the morning session, its shares
were trading down 3.85% at 68.75 baht.
The acquisition will nearly triple Global Power Supply's
capacity. More significantly, perhaps, it also provides the PTT
unit with a direct hand in powering the ruling Thai junta's plans
to reboot the eastern seaboard industrial zone.
In a statement, Engie said the sale means it will no longer
operate any coal-fired power plants in the Asia-Pacific region and
will reduce its entire global coal-fired generation capacity by
14%.
The area east of Bangkok has long been a focus for developing
Thailand's long-term industrial growth and the military government
has announced plans to lure a new range of technology-based
investors. In April, China's Alibaba Group Holding Ltd. (BABA)
became one of the first big investors in the area, with Executive
Chairman Jack Ma visiting Bangkok to announce a series of
agreements to help redevelop the area.
Thai officials predict the program, which they call Thailand
4.0, will ultimately draw about $45 billion in investments for new
roads and rail lines along with the renovation of a Vietnam War-era
air base. The project is a major priority for Thailand's military
government, which hopes to make a dent in the country's wealth gap
before setting a date for elections it has promised to hold next
year.
Write to James Hookway at james.hookway@wsj.com
(END) Dow Jones Newswires
June 20, 2018 04:02 ET (08:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
PTT Public (PK) (USOTC:PUTRY)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
PTT Public (PK) (USOTC:PUTRY)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024
Real-Time news about PTT Public Company Ltd (PK) (OTCMarkets): 0 recent articles
Plus d'articles sur Ptt Public Ltd., Co. (PC)