PTT Plc has chosen financial advisers for a review of its downstream businesses as it seeks to run them more efficiently and improve their valuations, according to people with knowledge of the matter.
Thailand’s largest oil and gas company, 51% owned by the Ministry of Finance, is working with Bualuang Securities Plc and UBS Group to help evaluate different deal options for the assets, said the sources, asking not to be identified because the process is private.
Options include merging some of the businesses or bringing in an equity partner to raise cash, they said.
Considerations are preliminary and PTT could decide against pursuing a transaction, the sources said. Representatives for Bualuang and UBS declined to comment, while PTT did not respond to requests seeking comment.
PTT chief executive officer Kongkrapan Intarajang said in August the company was seeking new partners to provide expertise and funding for some of its petrochemical and refinery units, adding that fierce competition and difficult market conditions were weighing on the industries.
He also said unprofitable businesses would be divested to boost earnings, without elaborating.
PTT Global Chemical (PTTGC), Thai Oil and IRPC Plc are among the SET-listed companies that PTT is talking to potential investors about, the executive said. PTT owns about 45% in each of them. The group will retain controlling stakes, he said.
PTT shares have dropped 10% this year, giving the company a market value of about 914 billion baht. Shares in PTTGC, Thai Oil and IRPC have lost around 30% each.