29 July 2021
board meeting PTT resolved to support TOP to buy shares in CAP, a major petrochemical producer in Indonesia. ready to support long-term financing plans Hoping to expand – add business value
Mr. Attaphol Rerkpiboon, Chief Executive Officer and President of PTT Public Company Limited, revealed that the Company would like to inform that the PTT Board of Directors at the meeting No. 5/21 on 20 May 2021 and the Special Meeting No. 6/21 on July 22, 2021 resolved to support Thai Oil Public Company Limited (TOP) in the acquisition of shares of PT Chandra Asri Petrochemical Tbk, which is Indonesia’s largest petrochemical producer which is the largest petrochemical market with high growth prospects in ASEAN
There is also a resolution to support TOP’s long-term financing plan for financial restructuring. This investment will increase the opportunity for TOP to expand and increase business value. This is in line with the strategic plan for enhancing the competitiveness of the downstream petroleum business of the PTT Group.
Mr. Wirat Uanarumit, Chief Executive Officer and President of Thai Oil Public Company Limited, said that the Company would like to inform you about the investment. directly of the company (through the exercise of pro-rata share subscription) in PT Chandra Asri Petrochemical Tbk (CAP), Indonesia’s largest integrated chemical producer, the largest and first-ever petrochemical market. High growth in Southeast Asia (ASEAN) has a complete chemical manufacturing plant.
It consists of modern world-class technology and factories. and operates the only Naphtha Cracker plant in the Republic of Indonesia producing olefins and polyolefins. It is also the only manufacturer of Styrene Monomer and Butadiene in the Republic of Indonesia.
The Company will invest through the newly established subsidiary. Accounting for not more than 15.38% of the total shares of CAP for the Company’s investment. It will be used exclusively for the development and construction of a petrochemical plant which will be built by PT Chandra Asri Perkasa (CAP2), a wholly-owned subsidiary of CAP. The main shareholders of CAP which are 1) PT Barito Pacific Tok 2) Marigold Resources Pte. Ltd. and 3) Pak Prajogo Pangestu (Barito Group) and SCG Chemicals Co., Ltd. have supported the capital increase. of CAP and the full development and construction of CAP2’s petrochemical plants.
For this reason, Barito Group will transfer the right to subscribe for newly issued shares in proportion to the Company, while SCG Chemicals Company Limited intends to exercise its right to subscribe for newly issued shares in proportion to its share. Some of the funds to be used for the share investment transaction will come from the Company. entered into a credit agreement with PTT Public Company Limited, which is a connected person of the Company
To establish a binding agreement between the parties for receiving financial assistance from a major shareholder of the Company. According to the resolution of the special agenda of the Board of Directors Meeting No. 2/21, which was held on May 21, 2021 and the Board of Directors’ meeting of the special agenda No. 4/21, held on July 23, 2021, with the value The total investment does not exceed $1,183 million or approximately 39,116 million baht.