Siam Cement to unload 60% stake in SSC
published : 28 Jun 2018 at 04:00
newspaper section: Business
SET-listed Siam Cement Plc (SCG), Thailand's largest cement maker and industrial conglomerate, is divesting itself of a 60% stake in Siam Stabilizers and Chemicals Co Ltd (SSC), to be taken up by Sakai Chemical Industry Co Ltd (SCI).
Thai Plastic and Chemicals Plc (TPC), an SCG subsidiary operating in the chemicals business, has reached an agreement on the divestment of its 60% direct holding in SSC.
"This divestment is conditional upon the approval of TPC's general meeting of shareholders scheduled to be held on Aug 1," SCG said. "This divestment is expected to be completed in the third quarter of 2018."
TPC will receive total proceeds of US$5.4 million (178 million baht), with a non-recurring after-tax gain of 38 million baht.
SSC is a maker of stabilisers for PVC and has operations in Rayong. In 2017, SSC had sales of 574 million baht, with total assets of 305 million baht.
TPC is an integrated maker of PVC products, with operations across Asean.
SCI is a leading PVC stabiliser company in Japan and provides chemical products.
The transaction is considered an asset disposition transaction, with the size calculated based on the total value of consideration of 0.03% of total assets stated in SCG's consolidated financial statements as of March 31.
When combined with those in the past six months before the date of the transaction, the total size is 0.08%.
The transaction thus does not require disclosure of information pursuant to the rules for acquisition and disposition of assets, SCG said.