PTT Plc is preparing to increase its shareholding in Global Power Synergy Plc (GPSC) to 31.7% to ease business operations, without giving PTT and its subsidiaries more grip on GPSC.
The national oil and gas conglomerate, now with 22.8% ownership of GPSC, will buy 8.9% of shares, worth about 16.8 billion baht, from Thai Oil (TOP), a refining arm under PTT, according to a new shareholding structure plan approved by PTT's board on Thursday.
PTT is also the parent company of GPSC, set up to serve as PTT's power generation arm.
The share purchase deal is being negotiated and is expected to conclude this year. TOP currently holds 8.9% of GPSC.
In total, PTT, TOP and another PTT subsidiary, PTT Global Chemical, hold 75.2% of shares in GPSC.
The change in shareholding structure will not change the group's ownership.
A source at TOP said the move is good for PTT because it will make the shareholding structure in the electricity business less complicated and allow easier execution of future business plans.
TOP executives also expect the share sales to help strengthen PTT's financial status, paving the way for more investment, the source said.
The PTT board reportedly agreed with a plan to have Thai Oil Power Co (TP) transfer all its businesses, worth 26.7 billion baht, to TOP.
PTT and TOP currently own 26% and 74%, respectively, of TP.
TP runs a co-generation power plant producing 118 megawatts of electricity and 216 tonnes of steam an hour.
Some 41MW of the plant's capacity is sold to state-run Electricity Generating Authority of Thailand, while the rest, together with the steam, is sold to TOP.
TOP executives expect their company to have 5.9 billion baht in cash flow from the transfer and share sales.