Thailand: PTT Plc to increase stake in Bangchak Petroleum.

(From Thai Press Reports)

Section: Corporate News - PTT Plc, the state-owned energy conglomerate, will increase its holding in Bangchak Petroleum Plc to support a strategy to produce more lucrative lighter oil products and cut back on low-margin fuel oil, according to a senior executive, the Bangkok Post reports.

President Prasert Bunsumpun said the board Tuesday approved PTT's plan to raise its stake in Bangchak, an oil refiner and marketer, to 25-30% from the existing 8% by agreeing to buy new shares that Bangchak plans to issue under a capital increase programme at prices ranging from 14 to 16 baht per share.

"PTT has not yet decided on the exact share price as it will depend on the size of investment PTT is required to make to upgrade the refining process," he said.

PTT has three sums of money in mind - $250 million, $300 million or $350 million - to commit to Bangchak. However, it is expected to inject no more than $120 million out of its own funds initially. It expects to take up additional shares, to which it believes no other shareholders will subscribe, with the purchase funded by loans later.

Bangchak Tuesday informed the Stock Exchange of Thailand that its shareholders had approved the company's proposal to raise its capital to 1.53 billion baht from 867.14 million by selling 664.5 million new shares at one baht par value. Of the total issued shares, 283 million would be offered to PTT.

In addition, the company has approval to issue subordinated and unsecured convertible ...