SET-listed PTG Energy, a local oil trader and operator of PT petrol stations, has acquired shares in local car leasing firm Paisan Capital to further expand its non-oil business.
Pitak Ratchakitprakarn, president of PTG, expects rapid growth of non-oil businesses in the coming years.
The company spent 825 million baht to buy a 33.3% share in Paisan Capital, which offers services ranging from hire-purchase financing for second-hand trucks to revolving business credit and loan refinancing.
The share acquisition is expected to be completed within this weekend.
Mr Pitak said Paisan Capital will be a new business partner, which will work together with PTG to fuel its business growth.
PTG will benefit from Paisan Capital's truck-related business while Paisan Capital can use the partnership to pave the way for the expansion of its customer base, which currently stands at 100,000 truck drivers.
Mr Pitak said he expects a return on investment in Paisan Capital will be realised this year, which will accelerate an increase in PTG's earnings before, interest, tax, depreciation and amortisation (Ebitda) to a rate of 25% within 2024, up from 20% in 2023.
The investment is part of PTG's new asset acquisition plan, which has a budget of 1.5-2 billion baht.
The money is part of the company's total investment budget of roughly 6 billion baht.
Between 1 and 1.5 billion baht will be allocated to the development of oil trade facilities, and between 1.5 and 2 billion baht will go to the company's non-oil businesses.
PTG had already taken a step towards diversifying into car leasing prior to this latest investment. Other non-oil businesses PTG has expanded into include food and beverages, car care, and convenience stores.
PTG continues to seek opportunities in other non-oil businesses, including clean energy, said Rangsan Puangprang, PTG's executive vice-president.
He expects the firm's oil sales to grow by 12-15% this year, up from 6 billion litres sold last year, thanks to a campaign to encourage motorists to apply for PT membership cards. There are currently 21.5 million cardholders.
Sukrit Rianpinyawat, chief executive of Paisan Capital, said the firm expects its loan portfolio to rise by 30% this year to 2.7 billion baht. The firm also plans to be listed on the stock market to raise funds to expand its business.