Siamgas and Petrochemicals Plc (SGP) wants to pay 116 million baht for three of Shell's liquefied petroleum gas (LPG) assets in Vietnam and Malaysia.
SGP told the Stock Exchange of Thailand yesterday that its board has approved a plan to bid for 100% of Shell Gas (LPG) Vietnam (SGV), currently owned by Shell Gas (LPG) Holding BV, and for the latter's 79.64% holding in Shell Gas Hai Phong Ltd (SGH).
The first transaction is expected to cost US$100,000 (3 million baht), while the acquisition of SGH is valued at $300,000 (9.35 million baht).
SGP, through its 70% owned subsidiary MyGaz Sdn Bhd, will submit a bid for the purchase of the LPG business and assets in East Malaysia of Shell Timur Sdn Bhd (STSB). This deal will cost 10 million ringgit (100 million baht).
Jintana Kingkaew, SGP's deputy managing director, said the share acquisitions of SGV and SGH and assets of STSB are aimed at strengthening the ability of the company to expand LPG business in foreign markets.
This is in turn will add revenue sources for SGP and generate more income in the form of dividends.
Money required for the transactions will be mobilised from SGP's working capital, said Mrs Jintana.
SGV, which operates an LPG storage facility, has registered capital of $5.13 million with a total asset value of 159.3 million baht and liabilities of 373.2 million baht as of 2011.
Last year it reported revenue of 679 million baht for a net loss of 48.5 million and a cumulative loss of 322 million.
Also in the same business as SGV, SGH has registered capital of $11.2 million with a total asset value of 254 million baht and liabilities of 314 million last year.
Total revenue was 886 million baht for a net loss of 28.6 million and a cumulative loss of 259 million.
The companies have negative shareholder equity of 214 million baht and 59.7 million baht, respectively.
Shares of SGP closed yesterday on the SET at 15 baht, up 60 satang, in trade worth 106 million baht.