Energy conglomerate Bangchak Corporation Plc (BCP) is restructuring its business for greater operational flexibility by making a tender offer to acquire all remaining shares in Esso Thailand, which was previously taken over by Bangchak and renamed Bangchak Sriracha Plc (BSRC).
The company's board of directors approved a plan to acquire an 18.3% share held by minority shareholders via a share swap with newly issued ordinary shares of BCP, said Chaiwat Kovavisarach, chief executive of Bangchak Group and president of BCP.
The exchange ratio is set at one newly issued ordinary share of BCP per 6.50 BSRC shares.
He said BCP also announced its plan to delist BSRC's shares from the Stock Exchange of Thailand (SET), with the restructuring expected to be completed this year.
"This restructuring plan will enhance Bangchak Group's competitive capabilities and operational efficiency, enabling us to seize business opportunities more effectively while strengthening our financial performance," said Mr Chaiwat.
The rejig should also simplify Bangchak Group's shareholding structure and minimise redundant processes, he said.
Mr Chaiwat said the tender offer provides BSRC's minority shareholders the opportunity to own shares in BCP, a larger corporation with a solid financial foundation and earnings before interest, tax, depreciation and amortisation (Ebitda) of roughly 40 billion baht.
BSRC shareholders will retain indirect ownership in BSRC through their BCP holdings, while benefiting from higher liquidity and market capitalisation, he said.
With its diversified portfolio of core businesses, Bangchak Group is well-positioned for future growth under its "Bangchak 100X" strategy, targeting Ebitda of 100 billion baht by 2030, said Mr Chaiwat.
The restructuring plan for BSRC and subsequent delisting from the SET remains subject to various conditions, including approval at the annual BSRC general meeting of shareholders scheduled for April 9 and the annual BCP general meeting of shareholders on April 11.
