SET-listed PTT Plc, the national oil and gas conglomerate, plans to spin off its retail fuel business and list it on the Stock Exchange of Thailand soon.
President and chief executive Tevin Vongvanich said assets and liabilities of the retail fuel business and shares of companies related to the business will be transferred to PTT Retail Business Co Ltd.
PTT Retail Business will be renamed PTT Oil and Retail Business Co Ltd (PTTOR), which will serve as the retail flagship of the group.
"The restructuring of PTT's business will enhance the clarity and transparency of PTT Group for the public and increase flexibility, which will allow the retail business unit of the company to quickly respond in a market where competition among players is becoming fiercer," said Mr Tevin.
He declined to give the exact timing of when PTTOR would be listed on the SET and when its initial public offering would be launched, saying the transfer needed to pass through a complicated approval process.
Approval is needed from the relevant agencies such as the Energy Ministry, the Board of Directors of the State Enterprise Policy Office (superboard) and the cabinet, as well as from shareholders during PTT's annual general meeting.
PTTOR plans to list its shares on the SET and widely distribute them in order to offer the general public the opportunity to become owners of the company's oil and retail businesses through investments in PTTOR's shares, he said.
Mr Tevin said the present realignment has been carried out by taking into account the benefits, interests and concerns of all stakeholders, including customers, dealers, employees, local communities and society as a whole.
According to the restructuring plan, 1,500 PTT employees out of the 4,000 total will also be transferred to become employees of PTTOR, he said.
While the new liquefied petroleum gas (LPG) storage facilities in Chon Buri province will not be transferred, PTTOR would be designated to help operate them.
Mr Tevin said PTT and its group as well as government organisations will combined hold less than 50% of the shares in PTTOP in order to prevent it from being dominated by the parent company and the government.
"This is the way we try to transparently run our business to ensure the public that we are not reliant on the state," he said.
For its fuel retail business, the price mechanism will remain in place and continue to be monitored by the Energy Ministry in line with global price trends.
PTT's retail business policy will also focus on promoting Thailand's economic growth via the development of retail sectors, including small and medium-sized enterprises (SMEs), One Tambon One Product and the Pracha Rat (People's State) initiative.
Products from SME and local enterprises can be accentuated through the brand value of PTT products, for example, coffee beans in Cafe Amazon.
Regarding PTT's previous plan to diversify its business to invest in budget hotels near its petrol stations, the company said it is still in the planning phase and needs to negotiate with several partners before making a final decision, said Auttapol Rerkpiboon, senior executive vice-president overseeing the oil business unit.
"We have not yet scrapped the plan, but we will continue to negotiate with partners before making a final decision," he said.
PTT shares closed yesterday on the Stock Exchange of Thailand at 344 baht, up four baht, in heavy trade worth 1.88 billion baht.