BANGKOK: PTT Pcl, Thailand’s largest energy firm, said on Friday it will restructure its oil marketing and retail business and plans to list the division on Thailand’s stock exchange, without setting a specific time. State-controlled PTT had studied plans to spin off the retail business which analysts say could help unlock asset value and pave the way for stronger growth in the long run. The retail division may be valued between $2 billion and $3 billion, according to financial sources.
The restructuring of the retail unit, to be renamed as PTT Oil and Retail Business Co Ltd (PTTOR), will boost flexibility for PTT in expanding into international markets, Chief Executive Officer Tevin Vongvanich told a news conference. After the listing, PTT aims to hold about 45-50 percent in PTTOR, Tevin said but declined to disclose a timeframe of the IPO and how much money was to be raised from the share offer.
The restructuring plan, approved in principle by PTT’s board on Friday, is subject to shareholder approval before the transfer of assets into PTTOR, he said. PTT has more than 1,400 service stations, representing 40 percent of Thailand’s petrol station market.
The company has said it plans to invest 20 billion baht ($562 million) over the next five years to expand its gas service station network to 1,600. The retail business contributed about 15 percent of PTT’s operating profits, he said. PTT has said it expected revenue from its non-oil business to grow an average 20 percent a year during 2016-2020 as it expands its coffee franchises in Southeast Asia. The energy giant currently operates coffee shops under the Cafe Amazon brand. It also runs Daddy Dough local brand and Texas Chicken restaurants, and has contracts with CP All Pcl to host 7-Eleven stores at its service stations in Thailand. PTT shares closed up 1.2 percent on Friday, while the main Thai stock index was unchanged.
