ITD Plunges 6% after a Rally on Selling Potash Mine Is Short-Lived

The share price of Italian-Thai Development Public Company Limited (SET: ITD) plunged in the morning session on Tuesday after gaining more than 11% a session prior over the report of a potential buyer of Potash Mine that could give ITD some liquidity.

ITD settled 11.27% higher on Monday, following a report by Bloomberg that China’s SDIC Mining Investment Co. is reportedly in advanced negotiations to acquire a significant minority share in Asia Pacific Potash Corp.

The company is looking to purchase up to 49% of the Thai-based company, which holds exploration and production rights in northeast Thailand, from Italian-Thai Development Public Company Limited (SET: ITD).

The individuals, who opted for anonymity due to the confidential nature of the matter, suggested that the potential deal could amount to at least $400 million and may be disclosed within the next few weeks. However, they emphasized that no formal agreement has been reached and the discussions are still ongoing, therefore there is a possibility they may not reach a final deal.

Earlier this year, ITD said that it was seeking buyers to invest in the potash mining project in Udon Thani where the company holds 90% shareholding. It is said that the deal could value up to $500 million, which could help the company from this liquidity crunch.

However, the rise of ITD was short-lived as the share price plunged 6.33% to THB0.74 per share in the morning session on Tuesday. The lowest was THB0.72 per share, representing a plummet of 8.86%.