BCP Divests “LAC” to Record a Capital Gain of $100Mn into Retained Earnings

Bangchak Corporation Public Company Limited (BCP) has announced that the Board of Directors of the company has passed the resolution on the approval of BCP Innovation Pte. Ltd. (BCPI), a subsidiary of BCP, to reduce its shareholding in Lithium Americas Corp. (LAC) which engages in the lithium mining business in Argentina and the United States of America.

 

LAC is a listed company in Toronto Stock Exchange (TSX), Canada and in The New York Stock Exchange (NYSE), United States of America. The initial investment of USD 36 million and the total value from divestment is approximately USD 136 million. The capital gain from this divestment will be recorded directly into the retained earnings, and will not be recognized through the income statement. Consequently, as of December 21, 2020, BCPI holds 0.5 million shares of LAC or approximately 0.5% of total share.

 

The reduction of shareholding percentage does not affect the Lithium Purchase Agreement (the right to purchase a maximum of 6,000 tpa of Lithium battery-grade) from the Cauchari-Olaroz project.