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Published on December 14, 2007

The Supreme Administrative Court is likely to save PTT Plc - the privatised gas and oil company - from a disruptive delisting when it rules on a petition from a consumer protection group this morning.

"We expect the court ruling to be in favour of PTT, which will continue to run its business as usual," a source from one of the government authorities said yesterday.

Most analysts also believed the possibility that PTT's stock could be taken off the big board was remote because damage to the economy and investor confidence would be extensive.

"We expect the ruling by the Supreme Administrative Court on PTT's privatisation to be positive," said a report in Citi's Thailand Investment Daily yesterday.

"PTT will maintain its public-company status and its listing on the Stock Exchange of Thailand," it said.

"We believe the enactment of the Energy Business Act on December 11, 2007 was a timely indication of the government passing the baton to independent regulators, which will have authority to oversee the country's energy sector and public assets relating to energy."

The court will read out its findings at 10am amid deep anxiety from investors, who fear a de-listing verdict would not only hurt PTT stock but send the market into a tailspin.

Prasert Bunsumpun, president of PTT, asked the Stock Exchange of Thailand to halt trading in PTT stock while the verdict is being read in order to give investors time to absorb the news.

Last year the Consumers Foundation and a group of five people petitioned the Supreme Administrative Court to revoke the Royal Decree Determining Powers, Rights and Benefits of PTT Plc of 2001, and the Royal Decree Determining the Time for Repealing the Laws Governing the Petroleum Authority of Thailand of 2001.

They named the Cabinet, the prime minister, the energy minister and PTT as respondents for pursuing PTT's privatisation even though the petroleum agency had failed to transfer its gas transmission pipeline business, considered state assets, back to the government, as required by law before going public.

The royal decrees were issued in relation to the corporatisation of the Petroleum Authority of Thailand as PTT Plc under the Corporatisation Act of 1999.

If the court agrees to nullify the royal decrees, that would amount to nullifying PTT's privatisation.

Rosana Tositrakul, a leader of the activist group, said she and her group were waiting for the court verdict and ready to accept any outcome.

"We believe we are not fighting a losing battle as the evidence we have provided in this case is very clear. We already tried our best and we believe that fact is fact, it couldn't be anything else," she said.

Siam City Securities also sees PTT avoiding delisting, but not perhaps without some wounds.

"There could be a move to make the natural gas business more transparent because PTT now has a monopoly," its said in a report released yesterday.

"PTT might be forced to separate its gas transmission pipeline business into another subsidiary, in which PTT still holds a 100-per-cent stake. But PTT might have to pay tax to the tune of Bt12 billion from this asset transfer. This will cut the earnings per share of PTT by Bt4.26."

The Nation