PTG Logistics Co, a wholly-owned subsidiary of Thailand-based oil and gas company PTG Energy PCL (PTG), has announced that it will acquire a 32 per cent stake in the country’s ocean and land transportation provider Ama Marine Co for 621.6 million baht ($17.36 million).
It will buy 518,000 shares at 1,200 baht apiece, 12 times the par value of 100 baht each.
PTG’s chief executive officer Pitak Ratchakitprakarn said, the acquisition would reduce its costs in the logistic business.
Ama Marine started off its business with small handy-sized ships and subsequently acquired vessels to meet demand. It now has a fleet of six oil tankers to ship vegetable oil.
For inland transportation, it has a fleet of 38 GPS-equipped trucks and plans to buy more after the acquisition.
KGI Securities (Thailand) was appointed as independent financial advisor for this deal.
The company will also issue a debenture worth not exceeding 4 billion baht to use as capital for future investments. The interest rate will depend on the market at that time, he said.
PTG has planned to expand the number of PT stations to 1,200 nationwide. This year, it will set up 250 new petrol stations, of which 220 will be operated by itself and 30 by agencies.
It is also constructing its 10th tank farm to supply petrol in all its stations.
The CEO cited that it would be establishing a palm-oil complex through a joint venture, to use it to produce bio-diesel and other palm-oil products.
PTG targets revenue growth of 15-20 per cent this year on higher petrol sales. It is expecting the EBITDA to be in the region of 30-40 per cent in line with the increase in its primary margin.