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TTA to list PM Thoresen Asia Holdings

Thoresen Thai Agencies (TTA) plans to list its wholly-owned subsidiary, PM Thoresen Asia Holdings (PMTA), on the the Stock Exchange of Thailand around the first quarter of next year.



PMTA plans to offer 35.42 million shares to existing TTA shareholders, through the capital increase from Bt931 million to Bt1 billion. Its core operating subsidiary, Baconco, has shown profits since 2009. In the 2013 fiscal year, it showed profits of Bt253 million on top of Bt3.2 billion revenue.

The decision to spin off PMTA reflects Banconco's increasing market value and the need to provide a strategic financial platform to support its further growth, TTA said in a statement.

Baconco has already evolved into Vietnam's No 2 fertiliser company in terms of production and stands today as the sector's most profitable company. Baconco also operates a relatively smaller but growing warehouse business, which saw its rental revenues double year-on-year in fiscal year 2013.

Following the listing, TTA's stake in PMTA will be reduced from 100 per cent to 65 per cent. With new funding, Baronco will further fund the growth of its warehouse and logistics business, while providing additional capital for the company to boost export sales of its fertiliser products.

"The listing of PMTA is yet another exciting milestone in the development and evolution of TTA. PMTA will become TTA's third listed subsidiary, following the successful listing of Mermaid Maritime on the Singapore Stock Exchange in 2007 and the 2009 acquisition of Unique Mining Services, which is listed on the SET. The pre-emptive rights offer structure under which we are listing PMTA is specifically designed to allow TTA's existing shareholders to invest in Baconco's agrochemical and logistics businesses while being protected from the dilution effects on TTA's equity. I have full confidence that this move will unlock value across the spectrum and will provide Baconco with even greater resources to reach its next level of growth," said Chalermchai Mahagitsiri, TTA’s incoming president and CEO.


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