27 January 1998 03:18 [Source: ICIS news]
SINGAPORE (CNI)--A merger of Thailand's main olefins producers - National Petrochemical Co (NPC) and Thai Olefins Co (TOC) - though widely expected in Thai industry circles, would face hurdles, a NPC source told CNI Tuesday.
The key issues include the different corporate statuses of the companies: NPC is publicly listed, TOC is not.
Moreover, NPC's debts are estimated to be more than $200m, while TOC's are $42m. TOC director and acting president Pala Sookawesh recently confirmed his company will repay its debt in 1998.
Another hurdle for the proposed merger is TOC's plan to raise its capacity by 25%. NPC shareholders reportedly are concerned about how TOC will raise funds for that expansion, which is scheduled for completion by 2000.
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