PTT Oil and Retail Business (OR) plans to sell stakes in some businesses, including restaurants, to reduce losses caused by underperforming operations, as well as revisit enterprises with a dim outlook, says chief executive Disathat Panyarachun.
Share sales are needed to minimise losses and avoid the impact of a further decrease in share value, he said.
The company is preparing to sell shares in Imsub Global Cuisine Co, the owner and operator of food and beverage brands including Kouen Sushi Bar and Café Amazon in China.
OR also intends to sell shares in Flash Express, which provides goods delivery services.
The company announced earlier it would stop investment in American fast food chain Texas Chicken, leading to the shutdown of all of its branches in Thailand. The decision marked the end of its nine-year stint in Thailand, with total losses of 500 million baht.
The fried chicken market in Thailand is estimated at 27 billion baht, with KFC commanding a 90% market share, according to OR.
Mr Disathat said OR is also considering adjusting its business plan in Orbit Digital, a joint venture between OR and Bluebik Group, which offers advice on digital transformation.
OR made a 40% investment in the company, with the remainder funded by Bluebik Group.
Orbit Digital was established to help OR with new technologies and innovations, as well as seek new business opportunities for OR.
Plans to reduce losses and revisit businesses are expected to increase OR's earnings before interest, taxes, depreciation and amortisation to 30%, up from 27%, he said.
"Some business partnerships were meant to add value to our and our partners' assets, but time has proven we cannot achieve that goal," said Mr Disathat.
Some businesses also have limited resources for scaling up, so it is better to seek new partners, he said.
"We believe we are making a smart decision. Exiting some businesses prepares us for new investment," said Mr Disathat.
OR is in talks with companies in the lifestyle sector on new investment opportunities, but he declined to elaborate.
In oil retail, OR is continuing with a plan to expand its petrol stations in Cambodia as the market has growth potential, said Mr Disathat.
The company also wants to resume its oil business in Myanmar, which was suspended following internal political conflicts. The suspension cost OR 400 million baht.