PTT gives details of merger plan

PTT will merge Aromatics (Thailand) and Rayong Refinery into a new entity by early 2008, which will be 49% owned by PTT. PTT President Prasert Bunsumpun said that the move would harness synergies between the two companies and help cut production costs by US$100 million to US$200 million annually. The move is part of PTT’s realignment to strengthen the competitiveness of its refinery business. The merger plan will be proposed to shareholders of the two units for approval. Prasert said PTT will further merge the new entity with its 49.50%-owned refinery flagship Thai Oil PCL next year. The merger would create a new company with a total market capitalization of more than 200 billion baht (US$6 billion). At present, PTT owns 49.84% of Aromatics and 48.75% of Rayong Refinery. Prasert expects the merger process to be completed in about six months after shareholders of the two units give their approval. (May 11, 2007)