SET-listed Bangchak Corporation (BCP), an energy conglomerate, is working on a plan to delist its subsidiary Bangchak Sriracha Plc (BSRC), formerly Esso Thailand, from the stock market this year, as part of a business restructuring plan.
BCP took over Esso Thailand in 2023, which was later renamed Bangchak Sriracha.
The delisting process is expected to be completed by December this year, said Anuwat Rungruangrattanagul, acting chief executive and senior executive vice-president of BSRC.
"This restructuring will enhance Bangchak Group's competitive capabilities and operational efficiency, enabling us to seize business opportunities more effectively while strengthening our financial performance," he said.
The delisting follows BCP's earlier announcement that the company's board of directors approved a plan to acquire an 18.3% stake, or 631.86 million shares, held by minority shareholders in BSRC via a share swap with newly issued ordinary shares of BCP.
The tender offer to acquire all remaining shares will be carried out between September and November, said Mr Anuwat.
The exchange ratio is set at one newly issued ordinary share of BCP per 6.50 BSRC shares.
The tender offer provides BSRC's minority shareholders with 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, according to Chaiwat Kovavisarach, chief executive of Bangchak Group and president of BCP.
BSRC shareholders will retain indirect ownership in BSRC through their BCP holdings, while benefiting from higher liquidity and market capitalisation.
BCP is optimistic about the good prospects of its businesses, especially a plan to raise revenue from its investment in the development of a sustainable aviation fuel (SAF) factory near its oil refinery in the Phra Khanong area of Bangkok.
The aviation industry is promoting the mixing of SAF with jet fuel because SAF produces up to 80% fewer greenhouse gas emissions than conventional fuel, according to media reports citing various forecasts.
