Analyst Expects TOP to Take Advantage of ฿5,000Mn from PTT’s Restructuring Plan

PTT announced the shareholding restructure of its power business (Restructuring Plan) by purchasing the entire shareholding account for 8.91% of GPSC from TOP in the amount of 16,882 million baht and transferring the entire business of Thaioil Power Company Limited (TP) to TOP in order to reduce the complexity of the shareholding structure. Analyst has assessed that Thai Oil Public Company Limited (TOP) will take the most advantage of the transaction, expecting to gain the profit from disposal of GPSC’s shares of more than 5,000 million baht and has given a “Hold” rating on TOP and PTT with the target price of ฿42/share and ฿34/share, respectively.

 

The Restructuring Plan consists of PTT purchasing Thai Oil Public Company Limited (TOP)’s entire shareholding in Global Power Synergy Public Company Limited (GPSC)’s common shares (GPSC and TOP are subsidiaries of PTT) and the Entire Business Transfer of Thaioil Power Company Limited (TP) to TOP (TP is a subsidiary of PTT and TOP: PTT and TOP hold 26.00% and 74.00% of TP’s registered share capital, respectively).

 

Mr. Wirat Uanarumil, Chief Executive Officer and President of TOP, revealed that the purpose of the Restructuring Plan is to reduce the complexity of the shareholding structure in the power business in order to increase transparency, flexibility and efficiency in managing and driving the business forward.

 

In addition, the completion of the Restructuring Plan will increase net cash flow, working capital and liquidity of TOP, and will strengthen the company’s financial position and serve as funds for the company’s future investment projects. TOP expects that it will be able to meet its former target of profits from the power business.

 

TOP planed to use such proceeds from the Share Disposal Transaction to pay for the considerations, taxes, fees and expenses relating to the EBT Transaction so as to increase cash, working capital and liquidity to strengthen the company’s financial position and to serve as funds for the company’s other investment projects in the future.