Thailand’s PTT offers to buy thermal coal miner Sakari Resources for $960 mn

PTT yesterday offered to buy Singapore-listed thermal coal miner Sakari Resources Ltd for $960 million as Thailand's largest energy company expands its portfolio in order to meet the country's rising demand for fuel.

The move from the state-owned oil and gas company comes a month after it won a protracted bidding war with Europe's largest oil company Royal Dutch Shell for Mozambique-focused gas explorer Cove Energy. (See: Shell backs out of bidding war with Thailand's PTT over UK's Cove Energy) `

PTT, has offered to buy the remaining stake for S$1.90 a share through PTT Asia Pacific Mining, which already owns a 45.3-per cent in Sakari, valuing the Indonesia-focused coal miner at S$2.2 billion.

The offer represents a premium of 27.5 per cent to Sakari's Friday's closing price of S$1.49.

The Bangkok-based oil major had initially made the offer conditional on the acquisition of a 50-per cent stake in Sakari, but later the same day changed it to an unconditional offer after it reached agreements with sellers to acquire 51.8 million shares, taking its stake in the company to more than 50 per cent, including its own 45.3 per cent.

"The (latest) offer reflects PTT's intention to increase its investment in Sakari Resources and enhance its strategic growth in the coal business. PTT Mining (wholly owned by PTT International) does not currently intend to maintain the listing status of Sakari Resources, if Sakari's free float falls below 10 per cent, as required," PTT president and chief executive Pailin Chuchottaworn said in a statement to the Thailand Stock Exchange.