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PTTEP, Pertamina finalise Hess acquisition

PTT Exploration and Production yesterday reported that it and Pertamina, on a 50:50 basis, had completed a deal to acquire Hess Corporation's interests in Indonesian oil-and-gas-producing assets.

Hence PTTEP and Pertamina hold a 23-per-cent interest in the Natuna Sea A Project for a transaction cost of US$526 million (Bt17.4 billion), including certain inter-company debts at $124 million. As a result, PTTEP in effect holds 11.5 per cent of the project.

Exchangeable bonds

CP Foods Holdings Ltd (CPFH), a wholly owned subsidiary of Charoen Pokphand Foods incorporated under the law of the British Virgin Islands, has priced and offered US$290.4 million (Bt9.578 billion) worth of exchangeable bonds (EBs) with 0.5-per-cent coupon rate and due in 2019 to investors outside Thailand.

The EBs will be listed on the Singapore Exchange by Friday.

The EB holders have the options to (a) exchange them into shares in CP All as held by CPFH, (b) offer the EBs to CPFH on the date falling two years from the EB issue date or (c) hold them until maturity. In the case of (b) and (c) CPFH will repay the EB holders in cash.

In accordance with the terms and conditions of the EBs, where the holders exercise the exchange rights, CPFH has the option to deliver CP All shares to the EB holders or redeem the EBs using cash of equivalent value. The EBs have been priced with an implied initial exchange price of Bt53.30 for one CP All Share, which is 130 per cent of the closing price of CP All shares as of last Thursday, January 9.

The issuance of the EBs is subject to the satisfaction of certain conditions and precedents that are customary of equity-linked transactions.

Phuket hotel ranked high

Sri Panwa Hotel in Phuket is one of the top beach destinations recommended by Hotels.com.

The online accommodation-booking website with more than 240,000 properties worldwide has put the hotel on its top-destinations chart, along with such properties as Vin Pearl Luxury in Vietnam, the Westin Langkawi in Malaysia, and Conrad Hotel in Bali.

It said Sri Panwa Hotel was at the top of the list among properties in Phuket. The 52 oceanfront villas offer private pools and breathtaking panoramic views of the southeastern tip of Phuket island and the Andaman Sea.

STA opens subsidiary in VN

Sri Trang Agro-Industry's wholly owned subsidiary Sri Trang International Pte has established a new subsidiary in Vietnam, Sri Trang Indochina (Vietnam) Company. The subsidiary is expected to commence business by next quarter.

Its businesses include trading and exporting rubber products.

EPCO Energy inks deal with Japan's Premier Solution

Eastern Printing has set up a new subsidiary named EPCO Energy with registered capital of Bt100 million to operate energy-related projects domestically and internationally.

EPCO Energy has signed an agreement with Premier Solution to develop a 23-megawatt solar-power project in Japan. The project has a contract value of 607.5 million yen (Bt193.8 million).

Weera Louwitawat, CEO of Eastern Printing, said in a report to the Stock Exchange of Thailand yesterday that the company wanted to expand its business and diversify risk into the international market, and energy business would provide steady revenue and cash flow for the long term. The investment will benefit the shareholders with steady return, he said.



CIMB sells shares at discount

CIMB Group Holdings, Malaysia's second-largest bank by assets, is selling shares valued at as much as 2.9 billion ringgit (Bt29 billion) to inject money into its units, to cut debt and for working capital.

The lender is selling 400 million shares at 7.10-7.25 ringgit each, according to offer terms obtained by Bloomberg News. That is a discount of between 0.7 per cent and 2.7 per cent to last week's closing price of 7.30 ringgit, before the stock was halted in Kuala Lumpur pending the announcement.

The lender and larger Malaysian competitor Malayan Banking have been expanding abroad as Asean further opens the region's markets ahead of the launch of the Asean Economic Community by 2015. CIMB owns banks in countries including Indonesia and Thailand, and bought most of Royal Bank of Scotland Group's Asia-Pacific cash equities and investment banking units last year to extend its regional reach.

The company has the option to sell an additional 100 million shares if demand warrants, terms of the offer show. - Bloomberg



Canon buys Thai IT firm

Canon Marketing Japan is accelerating its business expansion overseas by picking up an information-technology firm in Thailand.

The domestic marketer of Canon products will use the acquisition of Material Automation (Thailand) Co to provide IT-related goods and services for businesses, targeting mainly Japanese companies in Southeast Asia.

Canon MJ is working to develop IT-related services into a new source of revenue, aiming to generate sales of 5 billion yen (Bt1.6 billion) in Southeast Asia through this business by 2016.



Say sought on rules revision

The Securities and Exchange Commission of Thailand is seeking public comment on the proposed revision to the rules governing investment funds. The proposed revision applicable to mutual funds, private funds and provident funds aims to add more flexibility to asset types, diversifying fund portfolios and calculating derivatives investment in line with international standards. In addition, the fund classifications will also be revised to better reflect risks associated with both direct and indirect investment. The consultation paper is available until January 31.

The consultation paper is available on the SEC website at www.sec.or.th.



Airbus raises prices

Airbus has increased the average list prices of its aircraft by 2.6 per cent across the product line. The new pricing is effective from January 1, 2014.

The 2.6 per cent price increase has been calculated according to Airbus' standard escalation formula over the January 2013 to January 2014 period, said John Leahy, Airbus chief operating officer for customers.




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