Thai energy major PTT to acquire Australia’s Straits Resources for $544 million
13 Nov 2010
Australian company, Straits Resources' shares soared after it said it had agreed to sell its South-East Asian coal assets to its joint venture partner Thai energy major PTT International Co.
The company, under plans for demerger of its coal business intends to sell 100 per cent of its shares to PTT Mining Ltd for $1.72 per share. In addition to the cash payment, shareholders would also receive one share for each share of Straits held by them, in a new company formed to hold Straits' metal assets.
Trading in the shares of Straits had been halted last at $1.94, but resumed in mid afternoon and ending the day up 27 cents, or 14 per cent, at $2.21. In February 2008, the company's shares were traded at $7.05.
According to Straits Resources, if the planned demerger is implemented, the new entity, MetalsCo – would come to hold all the metals and associated businesses that are currently held by SRL.
"MetalsCo will be a pure metals company focused on copper and gold with a portfolio of producing assets and exploration assets," Straits said in a statement.
According to Straits chairman Alan Good demerging of the group's coal and base metal assets marked an important step in unlocking value for shareholders.