PTT to buy $335 mln stake of Australia’s Straits Resources unit
PTT International Co., Ltd. (PTTI), a wholly owned subsidiary of Thailand’s oil and gas giant PTT, will buy 60 percent of the stake in a unit of Australian miner Straits Resources Ltd, worth about US$335 million.
In a statement to the Stock Exchange of Thailand today, PTT’s president and chief executive officer Prasert Bunsumpun said PTTI through its wholly owned subsidiary Lints Ltd, Hong Kong, had on Sunday signed an agreement with Straits Resources Ltd to acquire the stake in Straits Bulk & Industrial Pty Ltd (SBI), which holds a stake in Singapore-listed coal miner Straits Asia Resources (SAR).
He said Straits Asia Resources apparently owns and operates Sebuku and Jembayan Coal Mines in Indonesia while has 80 percent of stake in Laung coal exploration project also in Indonesia, 35 percent of stake in a joint venture with Far East Energy Corp, which is conducting coal exploration in Brunei, and 33.5 percent of shareholding in certain coal deposits in Madagascar.
Moreover, he said, after completion of the transaction, Straits Resources Ltd will transfer its interest in a proposed salt farm in Western Australia to SBI as well.
“Coal represents an important long term diversification strategy and growth opportunity for PTT.
The proposed acquisition of a 60-percent interest in SBI is consistent with its business strategy and will enable PTT to diversify its resource base and income streams,” he said in the statement.
“PTT recognizes the strength of SAR as a low cost producer of highly marketable coal products with substantial long-term potential, a high quality client base and a talented employee pool. The acquisition opportunity provides PTT with a well balanced portfolio of producing development and exploration coal assets, enabling PTT to immediately realize its performance from the investment,” he added.
PTT will provide financial support to Lints through PTTI for the share purchase and the transaction is expected to be completed within June.
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