NPC says merger plan with TOC "not possible"

11 November 1997 07:30  [Source: ICIS news]

SINGAPORE (CNI)--Thai olefins producer National Petrochemical Co (NPC) said Tuesday that, contrary to industry speculation, it is unlikely to merge with Thai Olefins Co (TOC).

Such speculation gained momentum with a report in the Thai Business Day, 10 November, which quoted Permanent Secretary for the Industry Ministry, Preecha Attavipach, stating that the Petroleum Authority of Thailand (PTT) would reconsider plans to merge its subsidiaries.

PTT owns 49% of TOC and 38% of NPC.

Preecha, who is also a PTT director, reportedly said a merger would help ease TOC losses. Although the company saw a 33.37% rise in interim operating revenue to Baht5.35bn ($144.5m) H1 1997, it lost Baht500m last year.

A NPC spokesman told CNI: "NPC and TOC make similar products, but our facilities were designed for different feedstocks. NPC uses natural gas, and TOC uses naphtha from Thai Oil's refinery."

An earlier merger plan for the two companies was shelved because financial advisor Finance One counselled that a merger between listed NPC and non-listed TOC would be difficult.

By: Leslie Chua
+65 6780 4359

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